Comparative Management Accounting -An Analysis of French and German Management Accounting Practices

By analyzing French and German management accounting practices, this paper intendsto contribute to the field of comparative management accounting. Based on a contingencyapproach, similarities and differences between management accounting practices inFrance and Germany are analysed.The biggest differences between France and Germany could be observed in the educationalsystem. Through a very selective system in France, management elites are identified atan early stage and subsequently educated following a broad generalist approach. German universitiesare less selective and favour specialisation. It is likely that these differences result ina different role of the management accountant within the company and superior-subordinaterelationships in general.This paper takes a twofold approach to assess the influences and observed characteristics.One column of analysis is supported by existing research on management accounting inFrance and Germany, which is integrated into a structure of cause-effects assumptions withinthe contingency approach. The second column of analysis relies on personal interviews conductedin France and Germany. The seven interview partners each have professional experiencesin both countries.Cultural differences between France and Germany are used to explain differences inthe organisational structure, the role of management accountants and the use of instruments.In German companies, no direct organisational link between management accounting andfinancial accounting exists whereas in France, the large majority of the companies pooledthese departments in a finance department. The role of management accountants can be seenas a mirror of cultural dimensions as well as education. Management accounting in Germanyis predominantly limited to controlling while the French counterpart acts more like a businesspartner. The adopted instruments display the acceptance of innovations and differences inperceived requirements. The use of the tableau de bord in France versus the balanced scorecardin Germany appears t