The controversial relation between the Cost Management and the Financial Accounting

  • Mohamed M. Elgibaly Professor of Cost Management , Ph.D Brunel University, Beni Suef University
Keywords: Cost Management, Convergence, Financial accounting, Value to Customer


Within the current work, an attempt was drawn to try to narrow the gap between the new cost management tools and systems and the current stable financial accounting. Mainly, the focus is upon the announcement and the disclosure of the results of these cost management tools in the financial reports. Within the current work, we tried to discriminate between the earlier attempts, which aimed at achieving some sorts of convergence between the cost management tools and the financial accounting and our objective during the current work, either to achieve the approval or the inclusion within the financial reports, i.e. the disclosure of the results of applying the cost management tools, either compulsory or amendatory disclosure. The convergence process has shown a little bit of cooperation, but after all, nothing was positively achieved. The idea of the current work is mostly suggested from the concern that cost accounting and managerial accounting were modified and unionized their objectives under the new approach, the cost management approach. Different attempts were drawn currently, to, at least find a bridge to connect cost management and financial accounting, either through the main objective of this work or according to the nature of the different cost tools. Despite the different promising attempts drawn within this work, the problem and objective of the current work still too large, and further work still required.


Download data is not yet available.


Ahmed, A. S., and Duellman, S. (2013), Managerial overconfidence and accounting conservatism; Journal of Accounting Research, pp.1-30.

Arth, M. E., Beaver, W. H., and Landsman, W.R., (2001), The relevance of the value relevance literature for financial accounting standard setting: another view; Journal of accounting and economics, 31(1), pp.77-104.

Dani, A. C., and Beuren, M., (2014), Integration Level of Financial and Management Accounting Systems, with the Accounting Convergence Process and the Effectiveness of Controllership,Journal of Rducation and Research in Accounting, July/September, pp.284-302.

Elgialy, M. M., (1997); Reducing cost through the application of the ackflush costing and the throughput accounting, Financial and commercial journal, pp.1-40.

Elgibaly, M. M., (1998), The effecy of production technology upon the establishment of the standard costing, The financial and commercial journal, pp.48-127.

Golueva, Olga, (2020), Maximizing international returns: Impact of IFRS on foreign direct investments, Journal of Contemporary Accounting and Economics, 16, pp.2-20.

Goretzki, L., and Strauss, E., (2017), The role of the management Accounting-Local variations and global influences, Routledge Studies in Accounting, Forthcoming.

Granlund, M. and Malmi, T. (2002), Moderate Impact of ERP,son Management Accounting: A lag or Permanent Outcome; Management Accounting Research, 13(3), pp.299-321.

Granlund, M. and Mouritsen, J. (2003), Introduction: Problematizing the Relationship Between Management Control and Information Technology; European Accounting Review, 12(1), pp.77-83.

Granlund M., Taipaleenmaki, J., (2005), Management Control and Cotrllershipin New Economy Firms; Management Accounting Research, 16 (1), pp. 21-57.

Hopper, T., Kirkham, L, Scapens, R. W., and Turley, S., (1992), Does financial accounting dominate management accounting- a research note, Management Accounting Research, 3, p.307-311.

Huidong, Ma, (2019), Research on the application of ERP system in manufacturing enterprise, cost management.

Hyvonen, T., (2003), Management Accounting and Information Systems: ERP versus BoB, European Accounting Review, 12(1), pp. 55-67.

Katko, N., (2015), Lean accounting and generally accepted accounting principles, Cost Management.

Lian Qui, Y., and Fang Xiao, G., (2020), Research on cost management optimization of financial sharing center asid on ERP, Procedia Computer Science, 166, pp.115-119.

Lodh, S. C., and Gaffikin, M. J., (2006), Implementation of an integrated accounting and cost management system using SAP system: a field study; in R. Jachau and Tibbits (ED) Celebarating Accounting, Penrith South, N.S.W, pp.108-137.

Maliszeweka, J.P., and Klos, S., (2019), The methodology of the S.ERP system employment for small and mediam manufacturing companies, IFAC, www., pp. 85-90.

Mohamed, M. M., (2018), Studying the Effect of the Variety of Cost Management Techniques upon the Effectiveness and Efficiency of the Accounting Standards and Principles, Msc Theses , Beni Suef University, Faculty of Commerce.

Razel,J F. and Dang, L. (2008) The effect of ERP System Implementation on the Management of Earnings and Earnings Release Dates; Journal of Information Systems, 22(2), pp. 1-21

Ratnatunga, J., Michael, S. C., and Wahyuni, D., (2015), Social role expectations of management accounting professionals: An Australian Study; Advances in Management Accounting, pp.29-48.

Rezaramezani, A. and Mahdloo, M., (2014), Backflush Costing and Backflush Accounting, Academic Journal of Research in Business and Accounting; Vol. 2; No5.

Richardson, A.J., (eds), (2017), The relationship etween management and financial accounting as professions and technologies of practice, Routledge Studies in Accounting, forthcoming, pp.1-17.

Richardson, A., and Jones, D. B., (2007), Professional "rand", personal identity and resistance to change in the Canadian accounting profession: a comparative history of two accounting association merger negotiations, Accounting History, 12(2), pp.135-164.

Rom, A., and Rohde, C. (2007), Management Accounting and Integrated Information Systems: A literature Review; International Journal of Accounting Information Systems, 8(1), pp.40-68.

Taipaleenmaki, J., and Ikaheimo, S., (2013), International Journal of Accounting Information Systems, pp.1-28.

Trucco, Sara, (2015), Financial Accounting Development Paths and Alignment to Management Accounting in the Italian Context, Springer International Publishing Switzer land.

Van ser Veeken, H J M., and Wouters, M J F. (2002), Using Accounting Information Systems by Operations Managers in a Project Company; Management Accounting Research, 13(3), pp.345-370.

Weibenberger, B E, and Angelkort, H., (2011), Integration of Financial and Management Accounting Systems: The Mediating Influence of A consistent Financial Language on Controllership Effectiveness, Management Accounting Research, 22(3).

Young, J. J., (2006), Making up users; Accounting, Organizations and Society, 31(6), pp.579-600

How to Cite
Elgibaly, M. M. (2020). The controversial relation between the Cost Management and the Financial Accounting. INTERNATIONAL JOURNAL OF ECONOMICS, BUSINESS AND HUMAN BEHAVIOUR, 1(3), 1-17. Retrieved from
Original Research Article