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Management Accounting ll [Daft & Macintosh]
ACCY312 - Management Accounting III
9 Pages • Essays / Projects • Year: Pre-2021
Interdependence has been identified as an important variable explaining management accounting information exchanges at both the intraorganizational level. Interdependence are defined as the extent to which departments depend upon each other to accomplish their tasks (Thompson 1967). It arises when people jointly carry out activities to produce an output. Interdependencies between departments could be minimized by grouping individuals performing tasks relating to products or product line into a single unit. In hence, each department could produce and sell products without reference to the other departments. Thompson (1967) distinguished three types of interdependence that are pooled, sequential and reciprocal.
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