Management accounting practice and performance of manufacturing firms: Evidence from Lagos State
DOI:
https://doi.org/10.62533/bjmt.v6i2.58Keywords:
Planning Activities, Decision Making , Performance Measurement , Management Accounting PracticeAbstract
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 employed quantitative method to obtain survey data from randomly and purposively selected 327manufacturing firms in Lagos State. The obtained quantitative data was analyzed using multiple regression analysis.
The findings of the study reported a significant positive relationship between planning (β=0.102 < 0.021), decision making (β=0.512 < 0.043) and performance measurement (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.
