Advanced management accounting

Y8

BOOK

REVIEWS

situation. Indeed, chapters 1 to 16 nrerely serve to illustrate the institutional. accounting and economic differences between the UK and the US. The second objective of this book is the preparation of students for a ‘managerial role’. In my view, this book is at best, uneven, and more often than not disappointing in its attempts at achieving this. Three of these chapters (chapter 17, Management Accounting in the Management Process, chapter 18, Cost Accounting Techniques and, chapter 19, Management Accounting Techniques) are introductory and add little that is novel to this book. Also, these chapters continue in the pattern set by earlier chapters: they are technique-driven. This somewhat mechanical approach to the teaching of management accounting is unlikely, in this reviewer’s opinion, to prepare students for management. It would have been useful to have some case-study material, preferably based on real-world situations, to assist in achieving the authors’ stated aim. Finally, the remaining chapters (described as ‘advanced topics’) are not so advanced-but they are certainly very interesting, including material on planning, performance assessment and performance auditing. However, the bulk of this text is not suited to UK students (whether undergraduate, postgraduate or professional). Given its limited relevant content, its price is an effective barrier to its use, even in a restricted fashion for parts of courses. IRVING LAPSLEY Universify qf Stirling

M. L. Hirsch ADVANCED

MANAGEMENT

PWS-Kent,

Chapman

ACCOUNTING

& Hall (London,

1988). 597 pp. Al7.95

(hbk)

As the title suggests, this is not intended as a comprehensive teaching text on Management Accounting, but rather designed for the equivalent of a third (year) specialist course in the UK. It would probably also be suitable for taught postgraduate courses where students have previous education in Management Accounting. Specific prerequisites suggested are: ‘a background in at least cost-volume-profit analysis, tactical decision making, capital budgeting and product costing. It is also expected that students possess a basic knowledge of statistics and probability’ (Preface). As such, this is definitely not a comprehensive substitute for Horngren & Foster (1987) or Drury (1988) as a reference text, though the length and price are still substantial. As to the latter, it is a novel and refreshing feature that an apologia from the publishers is included at the front of the book comparing (favourably!) the specific price changes for (USA colleges) textbooks with other student expenditures-a lesson for the PR departments of UK publishers? For this price, the book offers a coverage of selected ‘advanced’ aspects of Management Accounting which, for the most part, are quantitative and similar to the coverage of Kaplan’s competitive text, i.e.: cost forecasting; learning; L.P.; C-V-P under uncertainty; information economics; variance investigation; joint cost allocation; capital budgeting with rationing and uncertainty; and divisional performance measurement/transfer pricing.

BOOK

99

REVIEWS

Distinctive aspects of the book (in comparison, e.g. with Kaplan) are the inclusion of chapters on: ‘Information and Human Behaviour’; ‘Issues Confronting Managerial and Cost Accounting’; and ‘Strategic Planning’, together with ‘Problems and Cases’ sections for each chapter which aggregate to more than 150 pages. The ‘Issues’ chapter is also linked with commentary in other chapters on implications of modern manufacturing environments for Management Accounting (reflective of the post-Kaplan generation of American texts?). The behavioural and strategic chapters invite comparison with Ezzamel & Hart (1987), but Hirsch’s is definitely not a similar text on management accounting in its organizational context-whilst individual psychology is treated in chapter 1, there is little or no indication of the author’s awareness of sociological or social psychology implications for Management Accounting. Since Ezzamel & Hart does not include problem material and accords quantitative issues a broad-brush treatment, the two texts could be regarded as complements-though this would prohibit (on the grounds of expense) the single adopted-text option. If a further edition is forthcoming, I suggest that the chapter on Capital Budgeting be omitted-it is by far the weakest of the book and the subject is usually covered by students in a separate course or reference in any event. I also felt that the ‘post-Kaplan’ material was often introduced as ‘lip-service’ rather than making a constructive contribution-but presumably this can be corrected as more references become available. Slightly surprising (but not necessarily unwelcome) was the treatment of (divisional) managerial evaluation without reference to agency theory-is this a breakthrough? On the other hand, despite mentioning the dearth of practical applications of many of the quantitative techniques covered herein, the bulk of the formal text material is devoted to their detailed exposition! Despite these critical comments, this book does seem to me to have advantages compared to Kaplan (1982)-until and unless a new edition of that emerges. I personally recommend it as a complement to Ezzamel LL Hart for UK fmalyear undergraduate courses in Management Accounting. K. T. MAUNDERS University of‘Leeds REFERENCES Drury, C. (1988). Management and Cost Accounting (2nd edn), London: VNR. Ezzamel, M. & Hart, H. (1987). Ad vanced Management Accounting, London: Cassell. Horngren, C. T. & Foster, G. (1987). Cost Accounting (6th edn), London: Prentice Hall Kaplan, R. S. (1982). Advanced Managemettt Arrounting, London: Prentice Hall.

R. A. Jarrow FINANCE

THEORY

Prentice-Hall

International

(London,

1987). 298 pp. Al695

(pbk)

It is refreshing to find a book on finance which is organised on the basis of theoretical logic rather than on the basis of the historical development of the