Management Accounting Education: A Defense Of Criticisms

Numerous criticisms have been directed at management accounting education, with some naming it a major contributor to the dilemma in managerial decision making. However, a closer analysis of the issues is needed before accepting the validity of these criticisms. One perceived weakness is that management accounting education teaches the use of direct labor as an allocation base to the exclusion of other bases. In fact, students are taught to select a base that is relevant to the specific circumstances. Other criticisms include: 1. an overemphasis on components of direct labor, 2. a short-term decision-making perspective, and 3. the use of allocated costs in decision making. However, experience indicates that management accounting teaches just the opposite. Instead, the accountants and decision makers who have failed to use the appropriate management accounting techniques that they have been taught are at fault.