Stage 3 of evolution of management accounting happens in 1985 until 1995. At this
stage, rapid technological development had increased the global competition. Management
accounting had more focuses on the reduction of waste and loss in business resources by
eliminating ‘non–value added’ activities. Organization start looking for cost reduction and
quality improvement analysis by using advanced methods of cost management. Therefore, new
managerial techniques had imposed at this stage for example Just-in-time (JIT), Activity-Based
Costing (ABC), Supply Chain Management and Total Quality Management. These, in
succession, involves developments in managerial accounting, referred to cost-target, strategic
costs accounting, costs on activities, non-financial indicators and etc. As we can see the first
two stages of Management Accounting Evolution was a managerial activity, more concentrate
on internal management rather than to the environment and strategy. With emerging
technologies and the pressure come from global market competition, management accountants
had faced huge challenges in adapting contemporary MA practice. The role of management
accounting had changed and tend to be more strategic focus, wide foresight, forward-looking,
risk taking and quick respond in order to react the changing need. The mindset of accounting
had changed and transit from providing information to resources management providing
support to seek opportunities and solve problems. At this stage, the organization’s strategy is
no longer purely internal, it is turning to the environment.