What is a strategic control system what role does accounting play in a Essay

What is a strategic control system what role does accounting play in a strategic control system are the strategic management accounting in Caterpillar effecti - Essay Example The process can be considered as a fundamental due to the fact that it involves even the strategic management accounting as one of the essential aspects. Basically SMA is one of the specializing areas in strategic control systems due to the fact that it deals primarily on management accounting issues specifically by using data and information related to finances and accounting (SMA Supplementary Notes 2-3). The strategic control management then can be considered essential in the operation of the whole system and in the specific aspects of the operation as well. In relation to management accounting, the said process can be considered to be involved in the study of the different groups involved in the market along with the market’s behaviour, the determination of most effective solutions and implementation of the said strategies (SMA Supplementary Notes 3). The main role of strategic control system in accounting is evident in the dimensions covered by the SMA. Specifically, it is the planning of possible projects and implementations of different plans related to financial issues. Due to the characteristic of being strategic, there are different alternatives and contingencies that are presented to ensure the success of the operation. It is important to consider though that management accounting is not the sole field wherein strategic control system is involve. Although majority of the companies concentrate on the strategies to improve and achieve profits for the company, the coverage of the system is extensive due to the involvement in different aspects and departments of the company or organization. Based on the study by Ittner & Larcker, the main processes included in the strategic control system are the strategic implementation process, the internal and the external monitoring (3). The said processes are applied