Management accounting and knowledge management Homework Help

Management accounting and knowledge management:
in search of intelligibility
Accounting has always concerned itself with information production, processing and reporting while
management accounting has sought to provide managers with information-based intelligence. Although
subjected to criticisms concerning its relevance over the past two decades, management accounting, as a
body of knowledge, seeks to abet knowledge creation across different organisational spheres.
If it is believed that within organisations, “future wealth and power will be derived mainly from intangible intellectual resources: knowledge capital” (Burton-Jones, 1999, p. 3), management accounting
will increasingly be judged in terms of its impact on knowledge management activities. This raises the
question of how information invokes knowledge. Writers on the significance of an emerging new economic order predicated on the management of knowledge assets distinguish data from information and
regard both as being distinct from knowledge.Boisot (1999, p. 12) for instance, characterises data as “a
property of things, knowledge as a property of agents and…information as that subset of data residing
in things that activates an agent”. Information may also be viewed simply as data interpreted into a meaningful framework. Knowledge then becomes information that has been authenticated and contextualised
(Chaminade and Roberts, 2003). Ultimately, knowledge is information that is made actionable. It is this
which ties management accounting activities to the pursuit of organisational effectiveness.

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