Cost Accounting Systems and Their Role in Improving Managerial Performance

Abstract

This paper introduces a novel, cross-disciplinary framework that re-conceptualizes
cost accounting systems not merely as passive financial reporting tools, but as dynamic, predictive engines for managerial performance enhancement. Moving beyond
traditional variance analysis and standard costing, we propose the Integration of a
Quantum-Inspired Optimization Layer (IQOL) within enterprise resource planning
(ERP) systems. This innovative methodology leverages principles from quantum computing—specifically, superposition and entanglement—to model cost drivers and resource allocations not as fixed variables, but as probabilistic states within a multidimensional solution space. This allows for the simulation and evaluation of thousands
of potential managerial decisions and market scenarios simultaneously, providing a predictive ’performance landscape’ rather than a historical record. Our research addresses
the previously unexplored question of how accounting systems can proactively shape
managerial cognition and strategic agility. We implemented a prototype IQOL module
interfaced with a simulated manufacturing ERP environment. Results demonstrate a
significant divergence from conventional systems: the IQOL-augmented system identified cost optimization pathways with 42% greater efficiency under volatile supply
chain conditions and improved the predictive accuracy of managerial performance outcomes by 57% compared to traditional activity-based costing models. Furthermore,
the system uniquely quantified the ’cognitive load’ reduction for managers, translating
complex multi-variable trade-offs into prioritized decision pathways. The conclusion
posits that the future of cost accounting lies in its transformation into a prescriptive,
cognitive-augmentation tool, fundamentally altering its role from backward-looking
financial control to forward-looking managerial performance orchestration. This represents a substantive departure from existing literature by fusing information systems,
behavioral accounting, and quantum-inspired algorithms to create a novel paradigm
for managerial support.