Management accounting has been very methodology focused since the advent of Activity Based Costing, now almost 50 years ago. Profitability Analytics focuses on principles and deep understanding. Understanding principles guides you to an effective methodology for your organization. Money is generally a lagging indicator for revenue, cost, and investment performance. A central tenant of the IMA Conceptual Framework for Managerial Costing and the Profitability Analytics Framework is that an effective, causal cost model is an operational model (of resources and processes) that is costed.  Going straight to a cost model creates a severe disconnect from reality, understanding, and useability. Larry White discusses this topic. 

To learn more on this and other subjects, visit the PACE website and follow our LinkedIn page and Twitter page.