Bridging the Gap between Management Accounting Theory and Practice: A Conceptual Perspective
DOI:
https://doi.org/10.56919/jbam.2621.017Keywords:
Accounting, Management Accounting, Management Accounting theory, Management Accounting Practice, Contingency TheoryAbstract
Though management accounting (MA) theory has played a pivotal role in the effective and efficient management of organisations since its inception, there are still identifiable pitfalls in the practical applications of this propounded theory. The wide differences between academic theories and real-world business practices have led to setbacks in achieving management accounting's potential for strategic decision-making. This paper examines the gap between management accounting theory and practice. The paper specifically examines the concept of management accounting, management accounting theory, the concept of the gap, management accounting practices, investigates the causes of the wide differences, and proposes ways to bridge the disconnect between management accounting theory and practice. The study is anchored in contingency theory and institutional theory and highlights a major comparison between management theory and practice. The findings reveal that the divergence stems from rigid academic models with a less practical approach, resistance to change in practice, inadequate professional training and contextual differences across industries. Recommendations are made for collaborative engagement between academia and practitioners, curriculum reforms and continuous professional development.The study concludes that bridging the gap between management accounting theory and practice entails a multidimensional approach that integrates practical relevance with academic perceptions. It need a collaboration of academic researchers, practitioners in the field of management accounting, captive of industries, education curriculum designers to bridge the persistence gap
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