Assessment of Management Accounting Practice & its Effect on Firms Performance: The Case of Ethiopian Cement Factories
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Date
2018-02
Authors
Yohannes, Fekadu
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
This thesis aims to assess the usage of management accounting practice being used & to examine its effect on performance of Ethiopian cement companies. A mixed research approach was used to answer the research questions that emerge through the review of related literature relevant for the study. The study statistically analyzed data obtained from the survey questionnaire. In order to establish the statistical significance of the independent variables on the dependent variable (performance) regression analysis was employed. The study result indicates that costing practice is the most highly used management accounting practice followed by budgeting practice by Ethiopian cement companies. The rest management accounting practices (performance evaluation, information for decision making and strategic analysis) have been given less attention by respondent companies. The study results further indicate that the independent variables; Cost Management Practices, Budget Management Practices, Performance Evaluation Management Practice, Information for Decision Making Management Practice and Strategic Analysis Management Practice are significant in explaining the performance of Ethiopian cement companies. The study suggest that respondent companies should evaluate performance using non-financial measures of performance evaluation such as Non-financial measure(s) related to customers, Non-financial measure(s) related to operation and innovation and Non-financial measure(s) related to employees in addition to their financial measure of performance, the researcher also recommends that various information for decision making practice should be implemented and get serious attention. Strategic analysis management practice of respondent companies mainly focused on maximizing shareholder value & long range forecasting, however other strategic analysis tools should get room by respondent companies to better understand the dynamics of the market, maintain competitive advantage, and increase performance.
Description
A thesis submitted to Addis Ababa University College of business and economics department of Accounting and finance in partial fulfillment of the requirements for degree of masters of Science in accounting and finance.
Keywords
Management Accounting, Ethiopian Cement