In a two-part essay: Discuss the tools and techniques in management accounting that can be used to support an organisation’s sustainability objectives. Go to:...

Management Accounting
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Management accounting
Cost Management
Discuss The Tools And Techniques In Management Accounting That Can Be Used To Support An Organisation’s Sustainability Objectives.
The concept of sustainable development requires that the needs of the existing current generation be met without affecting the ability of the future generation to meet their personal needs. According to an economic interpretation of a sustainable development sustainable considerations have to be incorporated within the process of decision making under the basis of the concept of environmental internalisation or sustainable internalisation costs. With an aim of ensuring that there is an increment in the success of environmental development and business contributions, the enhancement of the potential of management accounting related to the environment has been ensured.
Management accounting refers to the process of identification, measuring, report provision on information and the analysis of events of organisations. The process of management accounting is driven by individual requirements on information needs to an organisation and further guided by the decisions of investments made. There are four main functions of management accounting such as operational control, management control, product and customer costing, and strategic control. In the past, management accounting was mainly occupied by financial and quantitative information however; nowadays internal decision making is supported by new accounting tools and techniques which have been developed to ensure this functionality (Atkinson, Banker, Kaplan & Young, 2007). The management accounting techniques which are put in place to ensure environmental sustainability include Activity Based Costing and the use of Balanced Scorecards. The two techniques were developed with an aim of providing a reaction to the diversified informational needs which are prompted by the growth of the competitive environment.
Activity Based Costing technique is used with an aim of identifying the costs of various activities, services, products and customers in a more accurate manner compared to the traditional approaches. Balanced scorecards on the other hand ensures that a link is provided regarding the decisions made currently within an organisation and the long term actions which are meant to provide financial benefits to an organisation. The technique of balanced scorecard is used to provide an evaluation of how a business performs within an identified time frame through a set of indicators, financial, customer, business, and learning perspectives (Atkinson, Banker, Kaplan & Young, 2007).
The difference which exists between the traditional systems of management accounting and the newly developed techniques is based within the type of information being generated. The two identified techniques of management accounting are developed as a result of forming a reaction towards the information needs which are currently revolving around the growth in competition within the manufacturing and service industries. The two identified techniques also become useful during the integration of sustainable considerations into the process of decision making as a result of the increased need and attention for quality, aspects which do not require finance and long term perspective activities.
The identified techniques of management accounting were developed with an aim of supporting the process of decision making and the activities required for controlling the environment which are in turn related to the needs of the information. Environmental related management accounting involves the act of generating analysis and the use of both financial and non financial information with an aim of ensuring improvement within economic performance.
Taxes are a practical way of application of activity based costing within the level of an organisation. Taxes introduce accountability in a more direct manner which makes the available business organisation unit responsible for any wastes that it emits.
The balanced score card on the other hand makes use of the performance metric which are either financial or non financial with an aim of generating revenues...