A Solution for Confusion in Management Accounting

The Management Accounting profession currently lags in the ability to provide managers with timely, relevant and comprehensive internal decision support information. The Institute of Management Accountants has published a Conceptual Framework for Managerial Costing (CFMC) that identifies the principles and concepts for creating cost information for internal decision support. However, few cost methodologies implement the framework effectively. Numerous approaches and techniques serving different objectives, and subject to individual interpretations, lead to inconsistent and unreliable decision support information. Moreover, these approaches are based on principles other than causality and result in conflicting responses to managers’ questions.

The RCA Institute

The RCA Institute seeks to change that by raising the standard of management accounting knowledge and encouraging sound operational and cost modeling and decision making techniques and practices.

In particular the RCA Institute’s goals are:

  • Improve management accounting knowledge and practice by clarifying and embracing principles that will improve management’s ability for optimal decision-making.
  • Advance the knowledge and practice of Resource Consumption Accounting (RCA) through:
    • A community of active, high quality practitioners and academics.
    • Consistent and disciplined practice centered on a core body of RCA knowledge that is not diluted by wide variations in use or form.
    • Education of adopters, practitioners and vendors and the certification of vendors’ products and services.
    • Increased adoption of RCA, over the long-term, as the dominant management accounting approach in business, government, and non-profit organizations.
        

RCA Institute Vision & Mission

Vision: Advance management accountants’ ability to contribute to improved business performance through a consistent and disciplined understanding and application of RCA principles and techniques.

Mission: Inform, educate, certify, and sustain professionals/individuals and organizations in the consistent and disciplined use of RCA.