THE DEVELOPMENT OF ACCOUNTING IN EUROPE IN THE ERA OF SCIENTIFIC MANAGEMENT: THE ITALIAN ENGINEERING CONGLOMERATE, ANSALDO, 1918-1940

Utilizing archival materials, this paper examines the case of the Genoa-based firm, Ansaldo, which, by the early decades of the 20th century, had emerged as a major force in the inter-related fields of engineering, shipbuilding, and metal and steel manufacture in Italy. Following financial problems immediately after World War I and during the 1920s, the company was subsequently taken under the umbrella of the Italian State s financial holding unit, the Institute for Industrial Reconstruction (IRI), in the 1930s. Utilizing Lewin s theory of change as a framework for investigating change in management accounting, the paper examines the internal and external factors influencing the development of cost/management accounting at the company. These are also examined against the background of the development of scientific management, both in Italy and elsewhere.