Evaluation of Management Accounting Techniques as tool for planning and control decision making in selected manufacturing firms in ibadan, Nigeria

Topics: Decision making, Management, Decision theory Pages: 14 (2186 words) Published: November 25, 2013
Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 4(2):274-280 © Scholarlink Research Institute Journals, 2013 (ISSN: 2141-7024) jetems.scholarlinkresearch.org Economics and Management Sciences (JETEMS) 4(2):274-280 (ISSN: 2141-7016) Journal of Emerging Trends in

Evaluation of Management Accounting Techniques as Tool for
Planning and Control Decision-Making in Selected Manufacturing Companies in Ibadan, Nigeria
1

Onaolapo, Adekunle Abdulrahman and 2Oladejo, Kayode Samson
1

Department of Management Science and Accounting,
Faculty of Management Sciences,
Ladoke Akintola University of Technology, Ogbomoso, Oyo State, Nigeria. 2
Department of Accounting,
College of Social and Management Sciences,
Joseph Ayo Babalola University,P.M.B 5006 Ikeji-Arakeji, Osun State, Nigeria. Corresponding Author: Onaolapo, Adekunle Abdulrahman
__________________________________________________________________________________________ Abstract
The study evaluates Management Accounting Techniques as tools for Planning and Control Decision-Making in the selected manufacturing business in the study area. It has are specific objectives as: to examine the socioeconomic parameters influencing selection of MATs, to examine effect of socio economic parameters on the effectiveness of MATs, to identify the extent of adoption of MATs. Thirty (30) manufacturing companies were selected as the sample size through stratified random sampling technique. Descriptive analysis was employed through the use of tables, percentages, ranks e.t.c. However the hypotheses were tested using of Chi Square (X2) at 5% of significance, Correlation and Regression analysis through the use of Stata 10. The result revealed that socio economic parameter has significant effect on its adoption and effectiveness Based on findings, the study therefore recommends that management accounting techniques should be embraced thoroughly by manufacturing businesses developing countries such as such as Nigerian manufacturers in order to better their portfolio and improve their planning and control decision-making. The study therefore help managers of manufacturing companies to know the importance of management accounting techniques, impact of socio economic parameter in is adoption and its effect as planning and control decision-making tools. __________________________________________________________________________________________ Keywords: management accounting techniques, planning, competitive environment, manufacturing companies, decision making

of resources by people, in dynamic and competitive
contexts.

INTRODUCTION
Management process is a set of interdependent
activities used by an organization to carry out their
functions which include, planning, organizing,
staffing, leading, and controlling. Brech (2010)
recommends the following definition of management
as the most appropriate for general usage: “A social
process entailing responsibility for the effectiveness
and economic planning and regulations of the
operation of an enterprise in fulfillment of a given
purpose of task.” Such responsibilities involve:
(i) Judgment and decision in determining plans
and in using data to control performance and
progress against plans; and
(ii) The guidance, integration, motivation and
supervising the personnel comprising the
enterprise and carrying out its operations.

It is an integral part of the management process,
distinctly adds value by continuously probing
whether resources are used effectively by people and
organizations - in creating value for customers,
shareholders or other stakeholders. (Adelegan, 1998).
In this regard, resources include not only financial
ones, but also all other resources created and used by
organizations as a result of financial expenditures.
Thus, information and knowledge, work processes
and systems, trained personnel, innovative capacities,
morale, flexible cultures, and even committed
customers...
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