When a start-up company entered an entrepreneurial crisis, it turned to forward-looking management accounting tools to meet the challenges of its changing marketplace strategy and increasingly departmentalized organizational structure. These strategic tools - variance analysis, profit planning, and a performance measurement system - allowed the company to sustain its entrepreneurial spirit and growth. Here is the story of how it all came together.
Copyright 2013 by IMA®, Montvale, N.J., www.imanet.org, used with permission.
Lee, Michael and Cobia, Spencer R.. (2013). "Management Accounting Systems Support Start-Up Business Growth". Management Accounting Quarterly, 14(3), 1-17.