Comparative Management Accounting –Literature Review on Similarities and Differences BetweenManagement Accounting in Germanic and Anglophone Countries

This paper compares management accounting practices in Germany, the UK and the USA andreveals a range of differences and similarities. The most significant difference is in the use ofeither the general-ledger concept or the two-circle system. Through following these varyingapproaches, further differences arise, e.g., the total lack of imputed costs in the Anglo-Saxoncountries and different bases for calculated profits in Germany. German managementaccounting exerts a stronger influence on management, because in the Anglo-Saxon countriesfinancial accounting figures are not regarded as being useful for internal decision making.Thus management in Germany relies much more heavily on internal calculations provided bymanagement accounting. Management accountants in the USA and UK exert a much deeperimpact on operational matters and are involved in broader fields of activity than their Germancounterparts. While Anglo-Saxon management accounting is also directed at shareholders,German management accounting is addressed at internal target groups alone. Apart fromthese differences, several important similarities could also be observed. Managementaccountants in all three countries have reasonably similar objectives and goals. Among themost important are the provision of information, participation in the management process andattempts to ensure rational decision making by management. In general, a convergingapproach in management accounting practice is observable.