Management Accounting Techniques on Rationalize Decisions in the Nepalese Listed Manufacturing Companies

Abstract

The objective of this study was to examine how much the Nepalese listed manufacturing companies are utilizing management accounting techniques to rationalize decisions. It followed a descriptive research design and employed a survey questionnaire instrument to collect data. The population of this study comprised all the listed manufacturing companies on the Nepal Stock Exchange and their employees. Targeted respondents were those representatives of the sample companies who worked in the accounting department or/and at the managerial level. By using a random sampling technique, a sum of 408 respondents had partaken in the survey and 385 responses were properly filled up for further analysis. The survey questionnaire had three questions relating to general and demographic information, 28 questions relating to management accounting techniques, and five questions relating to the effect of the study variables on rationalizing decisions. Collected data were analyzed with the help of a statistical package for the social sciences software. Each of the 28 management accounting techniques was classified into nine groups and identified that most of the techniques except financial performance measurement techniques (having with cash flow analysis, ratio analysis, absorption/variable costing, transfer pricing) had no significant relation with rationalizing decisions in the Nepalese manufacturing companies. So, this study would assist to pay attention to the concerned personnel towards the use of management accounting techniques on rationalize decisions.

Effectiveness and impact of management accounting in hospitals: Evaluation of the effectiveness of cost accounting and revenue budgeting

“…Studies on the effects of management accounting on financial performance have been accumulated for for-profit firms (Alamri, 2019;Dahal et al, 2020;Onodi et al, 2021). For example, Alamri (2019) found that the introduction of activity based costing alone does not improve return on investment, but only in firms that perform more complex operations and use activity based costing in conjunction with other management systems.…”

Managerial Decisions and Organizational Efficiency with Mediating Effect of Traditional Management Accounting Practices

“…Most of the review concerning MAPs led in the world is on manufacturing firms. However, studies of efficacious organizations have featured the capability of MA information as a strategic weapon (Dahal, 2021a). MAPs assist executives in serving customer needs, accelerating decision-making processes, and managing the corporate value chain (Dahal, 2019).…”

“…Managerial decisions (MDs) emphasize managers' engagement in leveraging external information resources by providing the knowledge necessary to create practical competencies for fully utilizing internal organizational resources (Knight & Collier, 2009). Managers' performance is inextricably concerned with MA procedures, which might contribute to managers making necessary modifications and revisions to ensure operative and successful MDs (Abrahman et al, 2016;Dahal et al, 2020a).…”

The Relevance of Conventional Management Accounting Techniques

“…Traditionally, management accounting has focused on annual controls in secure and confirmed competitive operating environments due to the managers' need for historical data to apprehend overall performance and manipulate accountability in their organization (Taipaleenmaki & Ikaheimo, 2013). Management accounting's ongoing fashion has shifted from history-based planning and control to future-oriented decisions, strategic planning, and control (Dahal et al, 2020).…”