From Cost Control to Value Creation: Accounting Students’ Understanding of Modern Management Accounting

HRMARS - This study examines accounting students’ understanding of modern management accounting, particularly the shift from traditional cost control to value creation. Management accounting has evolved from a technical function concerned with cost determination and financial control into a strategic function that supports decision-making, resource efficiency, and organisational value creation. Guided by constructivist learning theory and the IFAC evolution of management accounting framework, this study investigates students’ basic understanding of management accounting, their understanding of modern management accounting as a value creation tool, and the areas they find difficult in learning its evolution. A descriptive survey design was employed using data collected from 55 accounting students enrolled in Management Accounting course. The questionnaire consisted of multiple-choice questions, Likert-scale items, and open-ended questions. Data were analysed using frequencies, percentages, mean scores, and simple thematic analysis. The findings show that students generally demonstrated strong basic understanding of management accounting, with most students correctly identifying its role in supporting internal decision-making. Students also showed positive understanding of modern management accounting as a tool for strategic decision-making, customer value, shareholder value, and adaptation to business changes. However, the findings reveal that the IFAC stages and the evolution of management accounting were the most difficult areas for students to understand. This suggests that students may recognise the general purpose of management accounting but still require stronger conceptual support in explaining its development from cost-focused practices to value creation-oriented practices. The study contributes to accounting education by highlighting the need for clearer explanations and practical examples when teaching the evolution of management accounting.