Costing in new enterprise environment: A challenge for managerial accounting researchers and practitioners

Krishan M. Gupta, A. Gunasekaran

Research output: Contribution to journalArticlepeer-review

19 Scopus citations


Purpose Faced with new wealth creation paradigm, triggered by technology and relentless globalization of markets, increasing number of companies are becoming knowledge-based enterprises. This paper aims to discuss the change in enterprise environment; evolution of performance and cost measures; and the challenges for managerial accounting researchers and practitioners in developing value-based costing and performance measurement systems (PMS). Design/methodology/approach A conceptual discussion and approach are taken. Findings Internet and e-commerce have changed forever the way companies conduct their businesses. Virtual enterprise and efficient supply chain management systems will shape the future of these enterprises. Organizations are trying to become agile enterprises with the help of strategic alliances of firms and integration using information technologies. Traditional performance and cost measures are no longer suitable for developing and managing enterprises in the so-called new environment. In order to remain relevant and to add value, cost and performance measures must be designed and systematically evaluated to reduce the often-unnoticed mismatch between strategic goals and operational tactics. Research limitations/implications Suggestions are presented for future research directions in managerial accounting areas that would address the requirements of new economy enterprises. Originality/value Alerts managerial accounting researchers and practitioners to develop new costing and PMS taking into account the new enterprise environment.

Original languageEnglish (US)
Pages (from-to)337-353
Number of pages17
JournalManagerial Auditing Journal
Issue number4
StatePublished - May 1 2005

All Science Journal Classification (ASJC) codes

  • Accounting
  • General Economics, Econometrics and Finance
  • General Business, Management and Accounting


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