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    Johnson and Kaplan's Relevance Lost The Rise and Fall of Management Accounting Reviewed

    Number of Pages: 10

     

    Summary of the research paper:

    In ten pages this 1987 text by H. Thomas Johnson and Robert S. Kaplan is reviewed. Five sources are cited in the bibliography.

    Name of Research Paper File: D0_TJJohns1.rtf

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    Unformatted Sample Text from the Research Paper:
    of Management Accounting" by H. Thomas Johnson and Robert Kaplan in 1987. Johnson and Kaplan not only recounted the historical development of the management accounting discipline and the effect it  had in the development and increasing industrial community within the United States in the 1800s but they also recognized a need for change in the industry which has been using  the same procedures since the early 1900s. These procedures were found to be unable to keep up with the competitive global market during the latter half of the 1900s and  is said to be the partial cause of the decrease in the marketplace that larger companies now hold. It was demonstrated by Johnson and Kaplan that smaller more focused companies  have dominated in the last forty years of global production and in order for larger companies to compete, they must renovate their management accounting systems to function on an activity-based  costing system. This being said, many industries today have adopting such policies in at least a fashion which complements their existing systems. The book has had over nine printings and  in between each print, Johnson and Kaplan have been approached by experts in areas other than accounting and sharing their ideas on cost maximization. "Relevance Lost" has now become the  basis for understanding management accounting and its role within the global industrial community. Background and Review In this new world of innovative technology and rapid growth traditional management accounting  processes which are vital to long-term planning are becoming outdated. With this in mind, H. Thomas Johnson and Robert S. Kaplan, professors of management accounting at Portland State University (Johnson),  Harvard Business School and Carnegie-Mellon University (Kaplan), Johnson and Kaplan document the history and evolution of management accounting in an attempt to provide the needed information required to update and 

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