Unit 9

Question 1

Strategic Management Accounting (SMA)

Answer 1

1. The provision of information to support strategic decisions in organizations
2. moves away from the traditional, internal focus of management accounting to include external information about competitors
3. can help to inform strategies to gain competitive advantage through exploiting linkages in the value chain

Question 2

SMA in a strategic role

Answer 2

helps to formulate and support the overall strategy of an organization by developing an appropriate framework of performance measurement