The study evaluates Management Accounting Techniques as tools for Planning and Control Decision-Making in the selected manufacturing business in the study area. It has are specific objectives as: to examine the socio- economic parameters influencing selection of MATs, to examine effect of socio economic parameters on the effectiveness of MATs, to identify the extent of adoption of MATs. Thirty (30) manufacturing companies were selected as the sample size through stratified random sampling technique. Descriptive analysis was employed through the use of tables, percentages, ranks e.t.c. However the hypotheses were tested using of Chi Square (X2) at 5% of significance, Correlation and Regression analysis through the use of Stata 10. The result revealed that socio economic parameter has significant effect on its adoption and effectiveness Based on findings, the study therefore recommends that management accounting techniques should be embraced thoroughly by manufacturing businesses developing countries such as such as Nigerian manufacturers in order to better their portfolio and improve their planning and control decision-making. The study therefore help managers of manufacturing companies to know the importance of management accounting techniques, impact of socio economic parameter in is adoption and its effect as planning and control decision-making tools.
Keywords: management accounting techniques, planning, competitive environment, manufacturing companies, decision making
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Management process is a set of interdependent activities used by an organization to carry out their functions which include, planning, organizing, staffing, leading, and controlling. Brech (2010) recommends the following definition of management as the most appropriate for general usage: "A social process entailing responsibility for the effectiveness and economic planning and regulations of the operation of an enterprise in fulfillment of a given purpose of task." Such responsibilities involve:
(i) Judgment and decision in determining plans and in using data to control performance and progress against plans; and
(ii) The guidance, integration, motivation and supervising the personnel comprising the enterprise and carrying out its operations.
Management Accounting refers to that part of the management process which is focused on adding value to organizations by attaining the effective use of resources by people, in dynamic and competitive contexts.
It is an integral part of the management process, distinctly adds value by continuously probing whether resources are used effectively by people and organizations - in creating value for customers, shareholders or other stakeholders. (Adelegan, 1998). In this regard, resources include not only financial ones, but also all other resources created and used by organizations as a result of financial expenditures. Thus, information and knowledge, work processes and systems, trained personnel, innovative capacities, morale, flexible cultures, and even committed customers may be included as resources - along with special configurations of resources that may be identified as strategic capabilities, core competencies or intellectual capital. Management accounting tasks deals with collection and provision of information for managers to use in decision making. The purpose of the management accounting discipline is to aid management decision making. Its role has traditionally been limited to the provision of relevance information for achieve planning, control and decision making (Roslender and Hart, 2003). The impact of the manner in which decision information is provides by accountant to decision makers is a critical in understanding how management accounting information should be collected and provided to superior performance. With ever increasing competitive pressure for the firms, a regular supply of management accounting information is arguably more importance than ever. …