ABSTRACT
To take a pan-theoretical approach and apply the theories to an issue or challenge that requires attention, it is recommended that the managerial accountant follow three steps: identifying all the theory that most closely addresses the issue or challenge, identifying the related theories for the problem, and taking a different perspective. The theories are grouped according to their perspective. Two are concerned with approaches to economics that are common to all aspects of managerial accounting: price change theory and wealth theory. Five theorize governance: contingency theory, institutional theory, the principal–agent (agency) theory, stakeholder theory and transaction cost theory. Three theorize value: disruptive innovation process theory, the resource-based view (RBV), and the resource conversion into capabilities and competencies theory. The chapter describes each theory separately to consider what are its themes for the managerial accountant. Within each theory the characteristics of the theory are identified together with any variants.
