ABSTRACT
The objective of this chapter is to examine the changing role of management accountants (MAs) by describing the evolution of management accounting and reviewing the local variants and global factors that influenced MAs in the context of India. The analysis is based on both theoretical descriptions and survey findings. Tracing the roots of management accounting systems from ancient India, we describe contemporary developments and the developing role of MAs. A questionnaire was distributed to cost and management accountants (CMAs) in India. Following responses at a 12-per cent return rate, we analysed the collected data regarding 22 core functions of the MA role. We conclude that strategically oriented functions might be contributing to changes in the MA role. This changing role is more fully reflected in industrial units than non-industrial units. Our results also indicate that MAs in India are performing the roles of a catalyst and adviser. Among the local variants, the commercial education system, regulations, and the role of institutions such as the Institute of Cost Accountants of India (ICAI) might be contributing to a reshaping of the MA’s role. It appears that local and national cultural issues may not be constraining this transformation process. Globalisation, advancement in information technology, emerging and innovative management accounting techniques, harmonisation of accounting standards, and other factors, seem to be responsible for this changing role. In addition, some respondents communicated the possibility that the role of MA is likely to change in response to the ‘Make in India’ campaign, because the issue of cost management is involved.
