1.2 According to some estimates, the volume of electronic commerce transactions exceeds Us$-3 trillion per year. Business-to-business transactions account for almost one half of this amount. What changes do you believe this explosion in e- commerce implies for management accounting? The explosion in e-commerce will affect management accounting in significant ways. One effect will be a drastic reduction in paperwork. Millions of transactions between businesses will be conducted electronically with no hard-copy documentation. Along with this method of communicating for business transactions comes the very significant issue of information security. Businesses need to find ways to protect confidential information in their own computers, while at the same time sharing the information necessary to complete transactions. Another effect of e-commerce is the dramatically increased speed with which business transactions can be conducted. In addition to these business-to-business transactional issues, there will be dramatic changes in the way management accounting procedures are carried out, one example being e-budgeting--the enterprise-wide electronic completion of a company's budgeting process.