Cost Accounting in Anglophone Subsidiaries - Empirical Evidence from Germany

Schröder M

Abstract

Since the industrialisation in the 19th century, cost accounting has developed into one of the key management accounting instruments. However, remarkable differences in cost accounting practices have emerged across countries, in particular between Anglophone and German firms. Companies from Germany are known for their very detailed and refined cost accounting systems, whereas firms from Anglophone countries such as the USA or UK generally have less complex systems in place. Such national particularities evoke the question how multinational firms design their cost accounting systems. Whereas from a corporate perspective, standardised cost accounting systems seem to be very appealing, foreign subsidiaries may favour their local cost accounting traditions over a corporately induced standard.