THE IMPLEMENTATION OF STRATEGIC MANAGEMENTACCOUNTING BASED ON VALUE CHAIN ANALYSIS: VALUE CHAINACCOUNTING

To compete successfully in today’s highly competitive global environment,companies have made customer satisfaction an overriding priority. They have alsoadopted new management approaches, changed their manufacturing systems andinvested in new technologies. Strategic managementaccounting examines thedecision-making linked with the business operationsand strategic work offinancial administration as support for the same. Strategic managementaccounting is a theory and practice of accounting that looks at an organization'scost position, cost advantages and product differentiation in order to make marketdecisions. The value chain is a systematic approachto examining the developmentof competitive advantage. The chain consists of a series of activities that createand build value. Value chain analysis refers to a structured method of analyzingthe effects of all core activities on cost and/or differentiation of the valuechain.With the growing division of labour and the global dispersion of theproduction ofcomponents, systemic competitiveness and so value chain analysishave become increasingly important. Value chain accounting is the combinationof value chain analysis and accounting theory.Valuechain accounting is animportant part of value chain management and a further development of strategicmanagement accounting. Value chain accounting is anew approach onaccounting subject which is combined by the theories of value chain management,supply chain management, accounting management andinformation technology.From the analysis about value chain theory and strategic management accountingtheory,this paper proposes an accounting managementframework based on valuechain analysis called value chain accounting