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Insight On The Use Of Management Accounting Practices Among Large Manufacturing Entities In Zimbabwe: A Case Study Of Bulawayo Metropolitan Province.

Volume 4 - Issue 2, February 2020 Edition
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Author(s)
Banele Dlamini
Keywords
Management Accounting Practices (MAPs), Costing system, Budgeting, Performance evaluation, Decision support system, Strategic management accounting
Abstract
The manufacturing sector in Zimbabwe is facing various obstacles which steered to the closure of numerous corporations. Management Accounting Practices (MAPs) have a critical role in the prosperity and survival of organizations as they offer vital pecuniary and non-pecuniary information for decision-making, policy formulation and promoting competitive edge for the entity. MAPs are used by manufacturing organizations in improving and assessing their operations. The study sought to explore the use of MAPs among large companies in Zimbabwe. Data were collected using questionnaires and in-depth interviews from manufacturing companies in the Bulawayo Metropolitan Province and analyzed using SPSS version 22. The study shown that large entities in the Bulawayo Metropolitan Province use few modern MAPs such as ABC, activity based budgeting and strategic management accounting and mainly apply traditional MAPs in their operations. The study recommends that large entities should adopt more modern management accounting practices in their operations. Entities should also consider using management accounting software so as to fully exploit the benefits of management accounting in a volatile business environment. It is essential for entities to consider the best practice in management accounting and scan their environment since the surrounding factors influence their choice of MAPs.
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