Traditional management accounting techniques such as standard costing and variance analysis, traditional budgeting and cost volume profit analysis are said to be less useful in the present manufacturing environment. To succeed in the present dynamic business environment, tools or strategies such as JIT, ABC, TQM, process re-engineering, life cycle assessment and target costing would greatly enhance the ability of corporations to meet global competition. Through a literature review, this study examines the extent to which traditional and contemporary management accounting tools are being used in four Asian countries: Singapore, Malaysia, China and India. Overall, the evidence reviewed suggests that the use of contemporary management accounting tools is lacking in the four countries. The use of traditional management accounting techniques remains strong. The paper concludes with various recommendations for future research, the most important of which is the need for future studies to be grounded in theory.
PurposeMany authors have predicted that the shorter product life cycles, advanced manufacturing technologies, decreasing emphasis on labour in the production process, and global competition may lead to the demise of standard costing. This exploratory study aims to provide empirical evidence on the extent to which companies in Malaysia use standard costing. It also examines the differences in the use of such techniques between local Malaysian firms and Japanese affiliates.Design/methodology/approachFrom the industrial and consumer products sectors listed on the Kuala Lumpur Stock Exchange and 21 Japanese affiliates in Malaysia, 66 companies were surveyed.FindingsDespite its various criticisms, the empirical findings suggest that standard costing is still being used by a large majority of firms in Malaysia. Thus, Malaysian companies (both Japanese and local) perceive that the basic principles of standard costing remain sound.Research limitations/implicationsWhile the empirical results may be interesting, the findings represent an exploratory area of research which ultimately needs to be grounded in theory. To do this, future studies should undertake detailed case studies on management accounting in practice.Originality/valueProvides empirical evidence of the extent of use of standard costing in Malaysia.
This study examines if budgets are still used in Malaysian companies. There are two divergent views on the usefulness of budgets. Proponents of budgets argue that they are still relevant and useful. Meanwhile, critics claim that budgets are obsolete. The study uses the instrument developed by Drury et al.. Results are compared to those of Guilding et al. The results show that budgeting practices in Malaysia are similar to those in the UK and New Zealand. There are only three major differences. First, Malaysian managers appear to feel that a participative approach to budgeting may encourage budget padding. Second, a much higher percentage of respondents compared to the Guilding et al.'s study, agree that top management should evaluate performance mainly on ability to achieve budgetary goals. Finally, companies in Malaysia appear to use flexible budgets more than those in the UK and New Zealand.
This study aims to address the issue of accountability in a waqf institution. Specifically, the focus of this study is to shed more light on how the mutawalli (waqf trustee) discharges accountability in managing waqf. In so doing, an interpretive case study in one Indonesian waqf institution, that is, Dompet Dhuafa (DD), was undertaken. The data were obtained through semi-structured interviews. Other sources of data collection techniques employed along with the interviews include observations and document reviews. Furthermore, this study uses the accountability mechanisms as the conceptual lens. The accountability mechanisms consist of disclosure statements and reports, performance assessment, participation, self-regulation and social auditing. In addition to the accountability mechanims, the stakeholder salience theory is also used to understand how the mutawalli shows accountability to multiple stakeholders. The findings of this study reveal that although DD recognizes the salient nature of its stakeholders, it does not prevent the mutawalli from showing accountability to all stakeholders. The mutawalli is of the view that accountability is not limited to accounting and reporting. Moreover, the mutawalli believes that showing accountability to different groups of stakeholder requires different mechanisms of accountability. As such, this study concludes that DD’s commitment to accountability is proven through its effort to deal with stakeholder salience. Keywords: Waqf, accountability, accountability mechanisms, stakeholder salienceJEL Classification: L31, M49, N35
In Malaysia, critics have raised concerns over mismanagement and goal achievement in zakat institutions. In the light of this, zakat institutions have responded to these concerns by adopting greater transparency to show their accountability. This study examines the current financial management practices and performance in zakat institutions. Six elements of the Financial Management Accountability Index (FMAI), i.e. organisational management, budget, receipts, expenditures, assets and reporting, were used as a benchmark. The study also attempts to find a relationship between financial management practices and financial performance. It employed the census method where all 14 zakat institutions were enumerated, and a sample of 140 employees and 140 customers responded to performance questionnaires. Empirical data were collected mainly through three sets of questionnaires. The data were analysed using descriptive analysis and bivariate correlation. The findings show that receipts, disbursements and asset management are the most crucial areas reflecting a ‘good’ level of practice by zakat institutions. The results also show that there is a positive relationship between financial management and financial performance. This study is significant as it highlights areas for improvement and hence spurs the institutions to achieve their goal. The results may guide zakat institutions on the means to adopt greater transparency and accountability to the public in future. Keywords: zakat, financial management, accountability, performance.
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