Management accounting practice in Palestine: an empirical evidence

The competitive global environment in which companies operate has been steadily becoming more challenging and demanding (Johnson and Kaplan, 1987).During the past three decades, conventional cost and management accounting practices have been under extensive criticism for their malfunction to instigate change and their inability to support management accounting innovations in coping with the requirements of a changing environment. Major acquisitions in Palestine increased the demand for more sophisticated and advanced management accounting information in order to react appropriately to external market pressures. Current study reviews the evolution of cost and management accounting innovations over the past century around the world, and to examine whether there has been a significant impact of management accounting in the organization. Firms in Palestine needed to cope regularly with various different determinants of accounting standards, and to focus on the manner through which management accounting is being used in the prevailing Israeli army occupation and the organic economic ties with Israel. Constraints and contingency theories would be an empirical base to increase understanding of the factors that explain how firms in Palestine adopt problem-solving management accounting practices.