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.
Abdel-Kader, M., & Luther, R. (2006). IFAC’s conception of the evolution of management accounting: A research note. Advances in Management Accounting, 15, 229–247.
Abu-Nassar, M., & Rutherford, B. A. (1996). External users of financial reports in less developed countries: the case of Jordan. British Accounting Review, 28(1), 73-87.
Al Abri, M. H., Al Aamri, A. Y., & Elhaj, A. M. A. (2024). Enhancing student learning experiences through integrated constructivist pedagogical models. European Journal of Contemporary Education and E-Learning, 2(1), 130-149.
Ali, U. Y. A. R. (2010). Cost and management accounting practices: a survey of manufacturing companies. Eurasian Journal of Business and Economics, 3(6), 113-125.
Arora, V. (2024). Quality costing: A key tool for enhancing customer satisfaction and efficiency. ExploreSearch, 1(03), 57–64. https://doi.org/10.62823/ExRe/01/03.16
Bromwich, M. (1990). The case for strategic management accounting: The role of accounting information for strategy in competitive markets. Accounting, Organizations and Society, 15(1–2), 27–46.
Chenhall, R. H., & Moers, F. (2015). The role of innovation in the evolution of management accounting and its integration into management control. Accounting, organizations and society, 47, 1-13.
Chut, M. (2020). Modern tools for management accounting and their role in ensuring the total value of the enterprise. Three Seas Economic Journal, 1(4), 153-158.
Collier, P. M. (2015). Accounting for managers: Interpreting accounting information for decision making. John Wiley & Sons.
Cunningham, G. M. (1992). Management control and accounting systems under a competitive strategy. Accounting, Auditing & Accountability Journal, 5(2). https://doi.org/10.1108/09513579210011880
Dai, J., & Vasarhelyi, M. A. (2023). Management accounting 4.0: The future of management accounting. Journal of emerging technologies in Accounting, 20(1), 1-13.
Dewi, Y. (2026). Cost Accounting System and Risk Governance: An Integrated Approach to Risk Management and Cost Efficiency. Riwayat: Educational Journal of History and Humanities, 9(1), 1306-1314.
Fotheringham, D., & Wiles, M. A. (2023). The effect of implementing chatbot customer service on stock returns: An event study analysis. Journal of the Academy of Marketing Science, 51(4), 802-822.
Gholami, A., Kordestani, G., & Sarajari, H. R. (2025). Management accounting development in response to organizational environmental changes. International Journal of Business Management and Entrepreneurship, 4(1), 15-35.
Gonçalves, T., & Gaio, C. (2021). The role of management accounting systems in global value strategies. Journal of Business Research, 124, 603-609.
Grossi, G., Vakkuri, J., & Sargiacomo, M. (2022). Accounting, performance and accountability challenges in hybrid organisations: a value creation perspective. Accounting, Auditing & Accountability Journal, 35(3), 577-597.
Institute of Management Accountants. (2008). Definition of management accounting. Institute of Management Accountants.
International Federation of Accountants. (1998). Management accounting concepts. International Management Accounting Practice Statement. IFAC.
Johnson, H. T., & Kaplan, R. S. (1987). Relevance lost: The rise and fall of management accounting. Harvard Business School Press.
Kaplan, R. S. (1984). The evolution of management accounting. Readings in accounting for management control, 586-621.
Khan, M. S. U., Sophia, J., & Shetty, P. (2025). The Evolving Role of Management Accounting in Strategic Decision-Making: A Study of Contemporary Practices in Data-Driven Enterprises. International Journal of Research and Scientific Innovation, 12(6), 1578-1590.
Klöckner, M., Schmidt, C. G., & Wagner, S. M. (2022). When blockchain creates shareholder value: empirical evidence from international firm announcements. Production and Operations Management, 31(1), 46-64.
Kuruppu, S. C., Milne, M. J., & Tilt, C. A. (2024). Sustainability control systems in short-term operational and long-term strategic decision-making. Meditari Accountancy Research, 32(1), 234-265.
Lepistö, K., Saunila, M., & Ukko, J. (2024). Enhancing customer satisfaction, personnel satisfaction and company reputation with total quality management: combining traditional and new views. Benchmarking: An International Journal, 31(1), 75-97.
Lourenço, O. (2012). Piaget and Vygotsky: Many resemblances, and a crucial difference. New Ideas in Psychology, 30(3), 281–295. https://doi.org/10.1016/j.newideapsych.2011.12.006
Ma, L., Chen, X., Zhou, J., & Aldieri, L. (2022). Strategic management accounting in small and medium-sized enterprises in emerging countries and markets: A case study from China. Economies, 10(4), 74.
Marelli, A. (2015). The evolving role of environmental management accounting in internal decision–making: a research note. International Journal of Accounting, Auditing and Performance Evaluation, 11(1), 14-47.
Mishra, N. R. (2023). Constructivist approach to learning: An analysis of pedagogical models of social constructivist learning theory. Journal of research and development, 6(01), 22-29.
Nugraha, E., Nugroho, L., Ali, A. J., & Putra, Y. M. (2024). Application of value-based management in management accounting: increasing efficiency through technology integration in the industrial era 4.0. Business, Management & Accounting Journal (BISMA), 1(3), 150-162.
Pedroso, E., & Gomes, C. F. (2024). The current role of management accounting: paradigm shift and future challenges. Journal of Accounting & Organizational Change, 20(2), 307-333.
Piaget, J. (1970). Science of education and the psychology of the child. Orion Press.
Quang Hung, B., Thanh Hoai, T., Anh Hoa, T., & Phong Nguyen, N. (2023). Performance implication of management accounting systems in market-oriented firms: Empirical evidence from Vietnam. Cogent Business & Management, 10(3), 2251630.
Salemans, L., & Budding, T. (2024). Management accounting and control systems as devices for public value creation in higher education. Financial Accountability & Management, 40(1), 105-123.
Salmanzadeh, H., Kordestani, G., & Kazemi, H. (2022). The role of management accounting in improving management control system in public sector. Iranian Journal of Finance, 6(1), 54-82.
Schaltegger, S., Christ, K. L., Wenzig, J., & Burritt, R. L. (2022). Corporate sustainability management accounting and multi?level links for sustainability–A systematic review. International journal of management reviews, 24(4), 480-500.
Sha, X. (2024). Application of Management Accounting Tools and Enterprise Value Creation Based on the Value Chain. Sage Open, 14(4), 21582440241303219.
Sonjaya, Y., Noch, M. Y., & Sutisna, E. (2024). Modern Approaches in Accounting Education: A Literature Review. Vifada Journal of Education, 2(2), 45-60.
Susilowati, E. (2023). Cost Management and Strategic Decision Making: The Role of Managerial Accounting. Atestasi: Jurnal Ilmiah Akuntansi, 6(1), 457-473.
Sutjahyani, D. (2025). The Role of Performance Measurement Systems in Enhancing Managerial Decision Making: A Management Accounting Perspective. The Journal of Academic Science, 2(5), 1373-1382.
Tran Thanh Thuy, N. (2025). Effect of accounting information system quality on decision-making success and non-financial performance: does non-financial information quality matter?. Cogent business & management, 12(1), 2447913.
Tunçez, H. A. (2025). The Contribution of Accounting Information to Strategic Decision-Making Processes. Söke ??letme Fakültesi Dergisi, 2(3), 14-23.
Venkatesh, R., Riley, J., Eldridge, S., Lawson, R. A., & Church, K. S. (2023). Management accounting - A rising star in the curriculum for a globally integrated, technology-driven business age. Issues in Accounting Education, 38(4), 109-129.
Vygotsky, L. S. (1978). Mind in society: The development of higher psychological processes. Harvard University Press.
Yilmaz, C. (2023). Creativity in cost and management accounting education: A literature review. K?br?sl? E?itim Bilimleri Dergisi, 18(01), 354-369.
Ahmad, R. A. R., Azmi, N. A., Noor, J. M. M., & Zakaria, N. B. (2026). From Cost Control to Value Creation: Accounting Students’ Understanding of Modern Management Accounting. International Journal of Academic Research in Progressive Education and Development, 15(2), 1332–1346.
Copyright: © 2026 The Author(s)
Published by Knowledge Words Publications (www.kwpublications.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
