The little changes in the traditional accounting system were not in alignment with the rapid radical transformation in the business environment. The evolution of managerial accounting with a more enhanced approach to cost accounting, performance management, value chain analysis, and other perspectives have taken place to keep pace with this multifarious and ever-changing business environments.
The responsibility of day to day decision making in any organization lies with the managers within the organization. Managers use a number of information and data to make numerous decisions during the day to day operations. A significant part of its information comprises of the accounting data of any organization. Managerial accounting is quite different from the financial accounting as the later one is mostly concerned with providing information to the outside stakeholders of an organization like the shareholders, suppliers, and customers, while managerial accounting offers information to the managers who are inside the organization (Warren, Reeve &. Duchac, 2009). As Apple Plc is into a large business, the elements, existing in the business value chain would be of large numbers. To take care of each of the elements is significant from the business point of view. In a large business organization, it is quite a difficult task to manage the managers’ performances to have control over business activities. So the organization needs some modernized techniques like activity-based costing, balanced scorecard approach and value chain analysis.