Heuristic reasoning in management accounting

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Heuristics serve as shortcuts that deliberately ignore certain information, such as by examining fewer cues or integrating less data. This approach contrasts with the perception of management accountants and controllers as rational agents who should consider all available information. Given their role in supplying information and assisting managers in judgment and decision-making, understanding the heuristics they employ is crucial. Additionally, it is important to identify the individual and situational factors that influence their use of heuristics. Through five empirical studies utilizing a mixed-methods design, the author explores these questions, addressing potential biases and the significant advantages of heuristic reasoning. Central to the discussion are dual-process approaches from cognitive psychology, which differentiate between two distinct mental processes. Heuristics are characterized as intuitive, automatic, rapid, and unconscious, often based on experience within specific social contexts, thus demonstrating ecological rationality. This work engages with contemporary issues in behavioral accounting research, offering valuable insights for both researchers and practitioners.