Management accounting practice and performance of manufacturing firms: Evidence from Lagos State
Issue Details
Journal ID | 1 |
---|---|
Volume | 6 |
Number | 2 |
Year | 2023 |
Issue Date | 2023-07-31 06:56:19 |
Keywords:
Abstract:
Management accounting practices generates information required as parts of resources for managers to pursue organization objectives in all ramifications (Drury, 2005) This is even more critical to the success of manufacturing companies with complex business process, wherein any action to be taken on the efficiency and effectiveness on cost management and other production parameters requires detail information (Marriot, 2000). Thus, performance-conscious manufacturing setting should engage in practices of generating information with the aid of various management accounting techniques. The study adopted a cross sectional research design. The population of the study comprises of 2,204 management staffs of the seventy six (76) quoted manufacturing firms in Lagos State, Nigeria. A sample of three hundred and twenty seven (327) quoted manufacturing firms that performing their trading activities in Lagos State was drawn from the population. The sample size was determined using Krejcie and Morgan (1970) table. The sample data was analyzed using multiple regressions. The findings of the study reported a significant positive relationship between planning activities and performance of manufacturing firms at (β=0.102 < 0.021), decision making also has a significant positive impact on the performance of manufacturing firms at (β=0.512 < 0.043) and performance measurement also has a significant positive effect on the performance of management of manufacturing firms at (β= 0.375<0.012) respectively. The study concludes that management accounting practice has significant positive impact on the performance of manufacturing firms in Lagos State, Nigeria. The findings of this study provide guidance to the SMEs owners or managers on how to implement the planning activities and to set the performance standard for the employees in order to enhance firm performance. This study has identified gap in the existing literatures on the impacts of management accounting practice on the performance of manufacturing firms in Lagos State, Nigeria.
Management accounting practices generates information required as parts of resources for managers to pursue organization objectives in all ramifications (Drury, 2005) This is even more critical to the success of manufacturing companies with complex business process, wherein any action to be taken on the efficiency and effectiveness on cost management and other production parameters requires detail information (Marriot, 2000). Thus, performance-conscious manufacturing setting should engage in practices of generating information with the aid of various management accounting techniques. The study adopted a cross sectional research design. The population of the study comprises of 2,204 management staffs of the seventy six (76) quoted manufacturing firms in Lagos State, Nigeria. A sample of three hundred and twenty seven (327) quoted manufacturing firms that performing their trading activities in Lagos State was drawn from the population. The sample size was determined using Krejcie and Morgan (1970) table. The sample data was analyzed using multiple regressions. The findings of the study reported a significant positive relationship between planning activities and performance of manufacturing firms at (β=0.102 < 0.021), decision making also has a significant positive impact on the performance of manufacturing firms at (β=0.512 < 0.043) and performance measurement also has a significant positive effect on the performance of management of manufacturing firms at (β= 0.375<0.012) respectively. The study concludes that management accounting practice has significant positive impact on the performance of manufacturing firms in Lagos State, Nigeria. The findings of this study provide guidance to the SMEs owners or managers on how to implement the planning activities and to set the performance standard for the employees in order to enhance firm performance. This study has identified gap in the existing literatures on the impacts of management accounting practice on the performance of manufacturing firms in Lagos State, Nigeria.
Published: 2023-07-31
Last Modified: 2023-07-31 06:16:43