Management Accounting Practices: A Comparative Analysis of Manufacturing and Service Industries
Farjana Yeshmin* Rehana Fowzia* Abstract
The study aims to examine the use of the management accounting techniques in manufacturing and service industries of Bangladesh for discharging managerial functions. To achieve this objective, 151 organizations from manufacturing and service industries have been surveyed with a structured questionnaire by using 5 point Likert scale. By identifying fourteen management accounting techniques, three factors have been identified to determine the variability’s of the usage level in managerial functions. The total variabilities in application of management accounting techniques in managerial functions of manufacturing and service industries, 73.343 % and 54.396% respectively. The findings reveal that management accounting techniques such as financial statement analysis, budgetary control, CVP analysis, variance analysis and fund flow analysis are common 14 both the industries and are used frequently in managerial functions.
Keywords: Management Accounting Techniques, Quantitative Techniques, Qualitative Techniques, Manufacturing Industry, Service Industry , Managerial Functions.
Management accounting is a technique of presenting accounting information to the various levels of management in order to enable it to perform its functions of planning, control and decisionmaking more efficiently. By conveying pertinent accounting data in time and at less cost, the management accounting system assists management in the formulation of policy, efficient execution of the same, control of performance and decision-making (Iyengar, 2000). Managerial accounting is relevant to many activities of managers. Managers develop strategies for achieving goals, evaluate the performance of workers and other managers and make decisions. Managers decide the prices to be charged for their
References: ASA University Review, Vol. 4 No. 1, January–June, 2010 Activity Based Costing Theory of Constraints (TOC) Activity-based costing (ABC) developed to provide more accurate ways of assigning the costs of indirect and support resources to activities, business processes, products, services, and customers (Kaplan and Atkinson, 2001)