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Confusion with Managerial Accounting

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An organization's managerial accounting system design can help or hinder the journey toward completing the full vision of performance management as we have been defining it in this monthly column. Understandably, people with nonfinancial backgrounds and training have difficulties understanding accounting; for many of them, accounting is outside their comfort zone. But a gathering storm in the community of management accountants clamoring for so-called advanced accounting techniques (e.g., activity-based costing, resource consumption accounting, lean accounting) is confusing even the trained accountants and seasoned practitioners. What is the problem?

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