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After World War I, there are financial accounting rules that have reduced the impact of accounting information is useful for evaluating the performance of subordinates in a large company (lost relevance). Until the 1920s, all the managers believe the information related to primary production processes, transactions and events that generate a nominal amount of the financial statements. After the year 1925, the information used by managers to be more simple and more manufacturing companies in the United States have developed management accounting procedure known as now.

During more than sixty years, accounting academics trying to restore the relevance of accounting information with the boarding of financial accounting information. The business will use a simple manufacturing model, similar to the 19th century textile companies, and in order to overcome production problems, academics reorder supplies kos reporting information. Nevertheless, the model is too simple to explain the real problems faced by managers but it is conditioned in order to facilitate the boarding of how information derived from financial statements can be made relevant to the decision-making.

Beginning in the 1980s until now, management accounting experience a rapid period of development with its role as co-financial accounting. Johnson and Kaplan write beautifully in the “Relevance Lost: The Rise and Fall of Management Accounting”. The book is good enough to read to understand about management accounting.