Part one of term paper
The last two decades has seen a revolution in management accounting theory and practice due to the challenges of the competitive environment in the 1980s. Kaplan and Johnson (1987) identified the failings and obsolescence of existing cost and performance measurement systems which led to re-examination of traditional cost accounting and manag ...

Part two of term paper
... more flexibility. According to Kaplan management accounts have become a subset of financial accounts and that they reflect more on the external rather than internal requirements of the company. Most of the managerial decision-making and control systems in use in the late 1980s were described by Johnson and Kaplan as stagnant. As a result, they went onto research in new accounting systems raising the profile of internal accounting systems by use of financial and non-financial measures althoug ...