McKinsey, James Oscar (1889–1937)

The first book on the subject of business budgeting and the first textbook on managerial accounting were authored by James O. McKinsey, a professor at the University of Chicago. Despite these innovations, McKinsey is best remembered for the management consulting firm he founded, which to this day bears his name. Before publication of McKinsey’s books, internal users of accounting information were neglected by educators. Only through years of experience could an accountant master the knowledge needed to profitably use management accounting information.

McKinsey was one of the main contributors to the development of business education in the United States during the first third of the twentieth century. In 1924 he became president of the American Association of University Instructors in Accounting, the predecessor of the American Accounting Association. Although his contributions were many, McKinsey’s career in accounting education was short. Following his year as president of the...