Business value created by management accounting

1 Star2 Stars3 Stars4 Stars5 Stars (2 votes, average: 5.00 out of 5)

Porter stated in his value chain concept that business support activities are contributing to the value creation process of a business organization. In the “classical view” business support activities are considered as indirect productive and not having a clear and direct contribution to the business organization value chain.

The information age has enabled and leveraged business support activities to become decisive contributors to the value creation process of any business. Can this value contribution be somehow determined or quantified? Management accounting is a classical business support activity that contributes to the business organization value chain.

Through usage of value management and value driven performance indicators, the value contribution can be determined and quantified. The present paper is highlighting one possible alternative to determine the value contribution by using indicators like economic value added and economic profit.

The value-based approach is putting indirect productive business activities into a new position, the one of a clear and important business value creator that cannot be ignored in the 21st century, a century driven by data, and information and knowledge that can sustain a decisive sustainable competitive advantage.

For more details and/or any other questions please get in touch  through Telegram or LinkedIn

The full published article can be found on ResearchGate at:



Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: