2017 Volume 25 Issue 2 Pages 47-61
In recent years, the research focusing on the MM loop has been conducted. In describing the progress and evolution of management accounting systems, the MM loop is a useful framework. This paper explains the MM loop and considers the progress of the accounting information system with the MM loop through the I-company’s case. This case shows that the progress of calculation system of gross margin has been brought about by changes in the calculation formulas and improvements in the operational environment of the system. I discussed three significance of using the MM loop in analysis of management accounting system. That is possible to (1) clarify in the mutual relation of each system in the whole system, (2) signify what kind of loop is necessary for the whole system, (3) study the evolution of systems when the MM loop is continuously turned. Also I pointed out difficulties properly distinguishing between related loops and non-related loops and identifying the organization context.
