QUANTITATIVE METHODOLOGY AS APPLIED TO MANAGEMENT ACCOUNTING: SURVEY AND SYNTHESIS

Abstract

Managerial (or cost) accounting has expanded in scope to cover many

areas of quantitative methodology. They include linear programming, regression analysis, and statistical decision-making theory. This is illustrated by a variety of reports and publications dealing with the application of operations research to management accounting. For example, as early as 1964, a Committee of Measurement in the Institute of Management Sciences suggested: The expected development and growth of management services will take place only if the accountants of the future possess more sophistication in mathematics than they typically have had in the past. Improved methods of analysis, now classified as operations research', must become the concern of the accountants.