Succeeding in Managerial Accounting, Part 1: Knowledge, Ability, and Rank

Are there rank-based differences in the measured ability, and technical, industry, and tacit managerial knowledge of practicing managerial accountants? To explore this question, we measured the ability and knowledge of 2,941 practicing managerial accountants in three industries. Our results indicate that higher-ranking managerial accountants have: (1) higher levels of industry and tacit managerial knowledge, (2) lower levels of entry-level technical knowledge, and (3) no differences in ability, compared with lower ranking managerial accountants. Our research provides insights into the knowledge "stocks" in, and learning processes of, managerial accounting practice.

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