Function Factors of Management Accounting Systems in Crisis

A Case Study of BSC in a Mid-sized Private Healthcare Corporation under the Coronavirus Pandemic

Abstract

The purpose of this paper is to clarify function factors of management accounting systems under a crisis such as the coronavirus pandemic. In this paper, a functioning management accounting system is defined as operating in the same way as under normal circumstances. Research question is as follows; What are factors that enable a management accounting system to operate in the same way as under normal circumstances in the coronavirus pandemic. This paper conducts interviews in a mid-sized private healthcare corporation. Two factors of management accounting systems are clarified.

(1) Education and initiatives on management accounting systems under normal circumstances foster understanding and acceptance of management accounting systems among medical professionals and promote accounting communication across multiple professions.

(2) Managers compares normal circumstances with crisis, and managers take flexible measures to operate management accounting systems so that the same activities can be made during crisis as during normal circumstances.