Evolution of management accounting and its instruments in municipalities’ management

This study discusses the major periods in the evolution of management accounting as a discipline and its instruments, distinctive for each stage. The paper tracks down the change in emphasis for each period in the business sector, and respectively in the non-profit sector. A subject of deep research is the municipalities’ need for management and accounting information in the context of “the good governance concept,” according to the Strategy for Innovation and Good Governance at Local Level of the Council of Europe. As methods, which meet the modern requirements for strategic and operational management of municipalities, one can point out Balanced Scorecard, outsourcing, benchmarking, total quality management, and more.