Assessment of Cost Accounting Practice: The Case of Des General Trading in Ethiopia
No Thumbnail Available
Date
2019-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
The purpose of this study is to assess and examine the cost accounting practices utilized by Des General Trading PLC in Ethiopia. This study adopted a descriptive survey design. The sample size of the study consists of 25 employees of the company, using self-administered questionnaire and structured interviews with selected accountants of the finance departments and other department staffs. The major findings of the study are as follows: the most widely used product costing method is process costing and the technique used is absorption costing; the most widely used overhead allocation is units produced; the most important area where the cost information is used for financial accounting, inventory valuation and to some extent for price decisions which is low on other decision making and cost control. The findings indicate that company perceives traditional cost accounting is still important and yet not familiarized with the new cost accounting practices such as activity based costing. This study recommends the creation of awareness about the importance of information for decision making practices and the advantage of using activity based costing.
Description
A Thesis Submitted to the Department of Accounting and Finance in Partial Fulfillment of the requirement for the Master of Science Degree in Accounting and Finance
Keywords
Cost Accounting, Cost Accounting Information, Decision Making