Research Repo

FACTORS WHICH EFFECTS THE

IMPLEMENTATION OF MANAGERIAL
ACCOUNTING

Prepared By
Sagar / Karamchand
Sanjay Kumar
Shahid Khan
Ameet Kumar
Class: BBA-5C

Prepared By
Sagar / Karamchand
Sanjay Kumar
Shahid Khan
Ameet Kumar
Class: BBA-5C

This Report Is Submitted To

Mr. Danish Iqbal
Assistant Professor
MS Department
Bahria University, Karachi.

In Partial Fulfillment of the Requirements for the Course of

Managerial Accounting

Submitted on: 17th Dec, 2014

Page 1

TABLE OF CONTENTS
ABSTRACT..3
INTRODUCTION....4
LITERATURE REVIEW6
RESEARCH DESIGN AND METHODOLOGY....15
DATA ANALYSIS AND INTERPRETATION..16
CONCLUSION.......20
LIMITATIONS OF THE STUDY20
REFERENCES...21

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ABSTRACT
This research has been conduct in accounting practices of four different manufacturing
industry of Pakistan. The information through the questionnaire from four different
manufacturing companies has been collected from the effective working respondents in the
finance department of the organization. The results of the study, the use of costing data and
technologies broad planning, control, and for the purpose of decision making is used by the
management, it is to be accomplished standard. As a result of 4 manufacturers main focus
but should be in the use of this costing data to keep proper accounting system, the decision
making process is make possible, in order to achieve high productivity and efficiency levels
to, thereby realizing the importance of understanding it.

Key Words: Cost Accounting, Managerial Accounting, Manufacturing Industry.

Performance, Technology.

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INTRODUCTION
Managerial accounting plays an important role in the world of business. Organizations use
managerial accounting in order to make decisions. Management accounting basically provide
crucial information to the organization which help the management, shareholders, operation
manager and accountant to come up with decisions. Top level management makes a good use
of managerial accounting as it assists them in making better decisions. Previously financially
accounting was been used in organizations but with the passage of time managerial
accounting expanded its wings from conventional reporting methods to planned decision
making method. Increasing companies between the companies is one of the key reasons for
the expansion of managerial accounting. In the financial accounting its main focal point on
the financial statement which they spread on outside of the organization, stockholders,
lenders and monetary. Here the financial accounting has a past period of time and allow the
viewers to checkout the how to companys performed. In the management accounting it has
focus on giving information to internal in the company as the management run the company
more successful and it is not also concern the past performance but the present and future
performance and it is not permit for accurate numbers. For the reason that manager take the
conclusion in the little period of time in the unpredictable environment, management
accounting a lot of depend on forecasting of promote and development. Financial accounting
assigns to mix the financial statement and the managerial accounting indicates within the
company processes connections of business through the accounts.
According to IOANA, D (2013) the size, structure, type and ownership have an impact on
the organization. That is why that management has to be aware what kind of challenges they
are going to face because of these characteristics. However, Minor difference in size doesnt
change the basic role of managerial accounting.
Now a days application of information technology has increased in the managerial
accounting. With the ease of information technology, it saves managers time and
organizations resources. Information technology provides information very quickly to the
organization hence, it leads to better decision making. While implementing information
technology in managerial accounting, organization has to make sure that it is going to
generate results. IT should increase organizations profitability instead of increasing the costs.
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Wrong application of technology in managerial accounting will result in loss of resources and
time hence, it is important to research and study its measures. Information technology used as
a main instrument to achieve any organizations goal, most of the companies influenced
through the technology such as, buy and sell, distribute and many others. Through
information technology many of the organization do their business and recommended
products and services to the clients in all over the world through it and internet. IT play an
important role in the company and it is benefits for the organization. In the managerial
accounting IT is rapidly growing. And the company adopts the technology as they have
known as prospective and do recognize as profit. And the IT is absolute introduce in financial
and managerial accounting in latest year.
In the managerial accounting the performance is also play a vital role to achieve a goal. As far
as performance in managerial accounting is considered, it is noted that performance is
evaluated by the level of achievement. The concept of performance lies when there is
attainment of goals hence, results are been generated through managerial accounting. There
are three key things that ensure that the performance has been achieved; when there is an
achievement of the goals, when the productivity and efficiency in the business arises and
when the value is been created. Without clear and particular goals, cannot be asses the
performance.
The main goal of the accounting is to present sufficient knowledge for many clients therefore
that their wants could reward with least amount of cost. There are two wide group separated
for the client to used collect the accounting information and they are within the company and
outside the company. Within the organization mean collect the information through internally
and outside the organization mean collect the information through externally.
The main idea of the managerial accounting is to help managers to come with the following
categories such as leading, controlling, planning and directing and decision making. The vital
goal for any company is to accomplish preferred financial result.

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LITERATURE REVIEW
Studies indicate accounting refers to the process where information can be identified,
measured and communicated to the users who can make decisions by using that information.
It is also said that accounting gives two types of information both financial and non-financial
to decision makers so that they can make the best possible decisions. People who are
interested in the organization such as mangers, shareholders, investor, employees, creditors
and the government can benefit from the economic information that can be extracted from
accounting (IOANA-DIANA, 2013).
Mangers need the information in the decision-making process and in order to control
activities that is why they request for it. However, shareholders seek information on the value
of their investments and profits. Employees have to make sure that the company is capable
enough to meet several requirements and in order to avoid redundancies, they collect
information. Further, banks and creditors gather information to know companys ability to
meet its financial responsibilities and liabilities. In order to determine macroeconomic
development policy, government agencies require accounting information (IOANA-DIANA,
2013).
Studies emphasize that the essential objective of the accounting is to offer enough
information for various users so that their needs can be fulfilled with minimum costs.
Accounting information is been used by several users though they can be divided into two
broad categories and those are internal groups and external groups. Internal groups are those
who make use of information within the organization however, external groups are those who
use information outside the organization (IOANA-DIANA, 2013).
Research says managerial information is different from the financial accounting information
because managerial accounting information is been provided to the people within the
company to make best decisions however, financial accounting information is been provided
to people outside the company who seeks it. Financial information is been used by the parties
outside the company though the managerial accounting information is been used by the
managers inside the company (IOANA-DIANA, 2013).

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Studies indicate that the managerial accounting plays a vital role when we take the
management process into account. It assists managers to lead the company in an efficient
manner. However, it is highlighted that managerial accounting is a challenging process
particularly used in the process of decision making. Mangers mainly use it so that they can
attain the objectives of the organization. The management functions; planning, organizing,
communicating, controlling and motivating are been influenced by this process therefore, it is
necessary for managers to learn how this process basically influence every single function
(IOANA-DIANA, 2013).
Research says that the role of the management is been affected by the size, type, structure and
ownership of the company therefore, the complications of the management accounting shall
be determined. The basic role of the managerial accounting or the basic work of the
management does not change by the minor differences in size. Although, the size of the
organization can be changed by the degree of formality with which the function is carried out
or the level of resources devoted to managerial accounting however, the managerial
accounting functions remains the same (IOANA-DIANA, 2013).
According to research, in the management process managerial accounting plays an essential
job particularly in giving out the information which is beneficial to the internal persons who
can make the right decisions for the organization. A thorough understanding is needed so that
mangers can get effective results in the process of decision-making (IOANA-DIANA, 2013).
Studies suggest that the managerial accounting is aimed at gathering information so that
information can be used in making operating decisions. And, these decisions are been taken
by top management. Managerial information can be taken from past, it can be historical data
or it can be estimated to make decisions in the future. In any of the scenario, information is
gathered and presented in such a way that is helpful in decision making for the operating
managers (STEVENSON, 1989).
According to Horngren et all (2005) managerial accounting plays an important role in such
dynamic environment as it brings change in organizations. It has an impact on the social,
economic and physical environment. Several business decisions are dependent upon
accounting information such as development of new products, the pricing policy, staff
recruitment and their remuneration. However, accounting data also has an influence on the
behavior of the managers because managers have an impact on their potential to act (IACOB
& AICU, 2012).
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Study suggests that the economic environment is changing rapidly thus the companies need
to adapt firm reorientation of the managerial accounting. Research says that when traditional
techniques and practices used by managerial accounting are been used in the new production
environment then it does not generate expected results. Therefore, it is indicated that there is
a room for improvement in the managerial accounting systems. Organizations performance
can be improved through managerial accounting in the future (IACOB & AICU, 2012).
Performance
According to Bourguignon (1995) three key views emerge from the concept of performance
for instance: performance can be defined by considering the level of achievement of the
goals, in line with the productivity and efficiency of the company, and keeping with the
creation of value. It is also said that everything in the company is been represented by the
performance that actually helps in attaining the strategic objectives of the company.
Performance of the company should be evaluated conforming to the goals projected in
advance. Without the cleared and specified objectives, performance cannot be evaluated.
Objectives of the organization can be quantitatively or qualitatively and they should be time
bound (IACOB & AICU, 2012).
Research suggests that the information is been provided to the managers then they take
decisions keeping that information into consideration therefore, it is necessary to forecast the
activity which involves improving the performance. Hence, performance is considered as a
way of attaining or exceeding planned objectives. The performance of the organization is
been evaluated keeping the level of these objectives into consideration. Therefore, experts
state the evaluation of the performance is a requirement for the expansion of an organization
and it should be one of the elements of performance management (IACOB & AICU, 2012).
Studies indicate that in order to increase efficiency of the companies assets, management
accounting is been considered as one of the key management techniques. It is one of those
key management techniques that can actually add value through the constant investigation. It
inquires that to establish value for clients, shareholders and stakeholders whether resources
are been utilized efficiently by people and organizations (Ajibolade, 2013).
According to Duncan (1972) physical and social variables make up the environment and total
of these variables is been taken into account in decision making behavior of people in the
organization. It includes both environments; internal and external. The key variable in the
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contingency-based study is the external environment which consists of such characteristics

like market demand, legal and political constraints, actions of rivals and proves innovations.
These variables are unpredictable in nature thats what create the external environment and it
is been argued that these variables have an impact on that extent that managers will need the
managerial information system information (Ajibolade, 2013).
Research indicates that unpredictability creates the obstacles for the organization;
organization cannot plan the future as the identification of the events becomes difficult and its
impact on the operations of the organization is not known. Few of the hurdles that managers
have to face are problem in setting up the prices, budgeting targets, and analyzing the
performance of the executives and units (Ajibolade, 2013).
Technology
According to Chenhall (2006) technology is the operation of the work processes, the way
organizations convert their input into output. Technology consists of hardware (machine and
tools), software, materials, people and knowledge. Contingency studies suggest technology
has such elements like complexity, task uncertainty and interdependence (Ajibolade, 2013).
According to Khandwalla (1977) technologies that are highly capital intensive and automated
as considered as complex technologies further, technologies that consist of techniques that are
quickly developing are also considered as complex technologies. Companies have to make
use of mass production and process technologies when they utilize capital intensive and
automated processes. It is recommended that companies who employ such technologies have
to use more complex management control and information systems (Ajibolade, 2013).
Research says now a days management accounting has expanded its field from tradition
financial reporting and control task to strategic decision making process. One of the reasons
of expansion is increasing competition among organizations. As far as specific area is
concerned, management accounting has devoted its absolute focus towards the classification
drivers of the financial performance of the business both internal and external (Silvia,
Moellerb, & Schlaefkec).
As long as the challenges are concerned, managerial accounting has to expand this domain
with those techniques that require competencies and skills which are beyond the management
control. Management can get effective results and new insights with regard to business and its
related performance can be determined if management starts adding new approaches to the
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area of managerial accounting. It can be referred to mathematics, IT technologies, statistics

and econometrics (Silvia, Moellerb, & Schlaefkec).
Studies emphasize that the essential objective of managerial accounting is to assist managers
in carrying out these following activities such as planning, organizing, directing, controlling
and decision making. The most important objective for any organization is to achieve desired
financial outcome. Management is considered effective as well as efficient if the business is
finically sound (Silvia, Moellerb, & Schlaefkec).
Studies indicate regardless of whether an organization is operating on a small scale, medium
scale or on a large scale, managerial accounting plays a vital role with regard to economic
information system. There are formal and informal channels of decision-making and
managers should extract high quality and relevant information from both accounting
information systems (Breuer, Frumuanu, & Manciu, 2013).
According to Briciu and Capusneanu (2011) managerial accounting is a key part of
management that copes up with discovering, presenting and analyzing information. That
information can actually help in developing strategies, decision making, maximizing of
resources etc. Professor Opera Calin proposes that one of the main goals of managerial
accounting is to reflect on all of the cost collections and costs allocation operations such as
products & services, orders, activities etc (Breuer, Frumuanu, & Manciu, 2013).
However, few experts suggests that managerial accounting is considered as accounting
information system that has a clear objective to assist managers and controlling the behaviors
by determining the terms among the utilized resources and the planned entirely. In reality the
role of managerial accounting is give information o the management. It is considered as a
valuable tool that is necessary in order to make decisions hence, to enhance profitability
(Breuer, Frumuanu, & Manciu, 2013).
Studies propose that managerial accounting is categorized into three important areas;
planning, organization and control. Planning plays a role in the managerial accounting that it
helps in setting up strategic goals as it gives an important information so that decisions can be
made with regard to adopted production systems, companys pricing policy and the capital
invested into the business. However, the role of organization is to bring the interaction
between the managerial accounting and the organizational process. Further, the control
function defines that the managerial accounting maintains the process of verification and to
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determine the level to which planned goals had not been attained. Furthermore, it helps in
determining the reports that indicate the actual results compare to planned goals (Breuer,
Frumuanu, & Manciu, 2013).
Research says that management of the company gets crucial information via managerial
accounting. It should make sure that a good management is involved in the decision making
process. Companies require accounting management thus they can get essential information
moreover, it serves the needs of the managers as well. Studies propose that the foremost role
of managerial accounting is to give information to the management, allowing control over the
actions therefore, helping in the decision making (Breuer, Frumuanu, & Manciu, 2013).
One way to make a business successful is to use information technology that is considered as
a powerful tool. Many business areas are been influenced through technology such as trading,
publishing and several others. Organizations have got an opportunity to offer products &
services to customers located any part of the world through IT and internet. Though, the
expansion of IT and internet remain surprising, however the huge segment has not discovered
in accounting yet particularly managerial accounting (Moorthy & Voon, 2012).
Research indicates managerial accounting produces information with regard to following
activities such as budget, capital investment, status, payback period etc. It provides such
information to the internal users as well as decision makers. There are various organizations
which avoid the importance of managerial accounting and they tend to pay attention towards
the financial accounting. Managerial accounting seems more important when it comes to
planning and controlling the operations when it is integrated with current IT (Moorthy &
Voon, 2012).
Research indicates that the managerial accounting has started applying IT which has gained
popularity as well. Companies are finding it beneficial because it assists the organization to
explore its potential to the fullest. Information with regard to IT can be extracted through the
use of IT in managerial accounting thus efficiency of the decision makers can be improved.
Moreover, it helps the management to get relevant and error-free information (Moorthy &
Voon, 2012).
Through the application of information technology, management and shareholders can get
information and insights with regard to managerial accounting. The information will help
managers and shareholders to decide on the budgets, investments and long term planning.
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Based on the companys vision and appropriate system, information technology is been
employed. Company can waste its capital investment on technology if there is not any strong
need for the information technology (Moorthy & Voon, 2012).
Based on the IT applied in the company, it can reap various benefits for the company. In
managerial accounting, the function of IT is growing tremendously. Organizations are ready
to bring technology in managerial accounting as they have recognized its potential and do
understand its benefits. It is unquestionable that IT is been introduced in the financial and
managerial accounting in recent years (Moorthy & Voon, 2012).
Decision makers can get several solutions through the management accounting system.
Management is able to get recommendations and results through the application of IT.
Decision makers can make a decision in very short span of time as the management
accounting system is able to calculate the payback period, ROI and breakeven point within
few seconds. As far as planning and forecasting regarding long term investment is concerned,
technology is very beneficial to the management. Management can tale correct and wise
decisions as the system can provide them with historical data and the market trends (Moorthy
& Voon, 2012).
One of the key benefits that management can get from IT is a competitive advantage.
Organization can gain technological advantages via internet as it plays an essential role in
technology. Customers attention can be drawn through the use of IT in the business which
would ultimately result in development of the company. Further, customers, shareholders and
creditors can see a understandable representation with regard to organizations plans and
goals because the IT in managerial accounting provides quick updates on the website
(Moorthy & Voon, 2012).
Research suggests before implementing IT in management accounting, company has to make
sure that it is implementing right kind of technology otherwise it results in unnecessary loss
and its wastage of resources as well. Instead of improving profitability of the company,
implementation of inappropriate technology will lead to decrease in income. It is not
necessary that every time implementation of technology in management accounting brings
profitability. On the other hand the risk can be avoided if management takes some serious
measures such as before implementing the technology if management along with accountants
study the feasibility and functionality of the system then organization can be saved from
future loses (Moorthy & Voon, 2012).
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Studies say that the managerial accounting is used to collect information that helps in making
decisions by top level management. The information is been taken from managerial
accounting; it can be historical data or it can assist the operating manager in making the
decisions. Managerial accounting includes three key areas in the business. Accounting
information is been organized in order to control cost, evaluation of performance and
producing decisions that actually have an impact on the future.
There was another cited taken by Alder, Everett, and Waldron (2000). They analysis through
giving questionnaire in New Zealand to asking managerial accountant for manufacturing
process in their organization, to find what technique use in their organization. Whereas
various investigation had focused on the exacting practice such as target costing or ABC
costing, Alder et al. given a managerial accounting questionnaire that contain huge selection
of practices to give complete set of answer of choices. Management accounting techniques
were asked to respond on 5 point scale from most use to least used. From sampling judgment
method 165 full questionnaires there were only 19% of rate response. When they compared
of traditional management accounting techniques and advanced management accounting
techniques the result found that in traditional costing, direct costing and standard costing
were more used as compare advance management accounting technique. The investigation by
Adler et al. (2000) that is usually about advanced management accounting techniques which
is dependable as confirmed by the Ainikkal (1993) and Hawkes et al (2003) research,
however conflicting through the value to individual practices. From that survey they analyses
that most of the organization use the ABC, and cost of quality methods and also most of the
biggest organization adopted modern accounting techniques.
Drury et al. (1993) survey those distribution techniques such like plant wide rate and another
is labor stand charge were applied in United Kingdom developing organization reason behind
their simplicity. ABC method generally consider, extensively not in used. From those
methods standard costing, such as payback analysis, and also target profit and return on
investment those were commonly applied. Product costing and profitability still appeared
concerned of management accounting. The study by Drury et al. is found that the using of
ABC and target costing which is similar study in 1990. The largest utilize of concert dealings
such like return on investment in other surveys.
It is another cited by Chenhall and Langfield (1998) taken a surveyed of biggest
manufacturing organization of Australian. That was the high rate, at 56 percent, as contrast
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with other studies. After second mailing to them there were total 78 responses. In the survey
management accounting technique worked in the organization by asking accountants. 38% of
rate adopted which is lowest rate and all of the techniques showed a result high. 90% or more
techniques adopted highly used in firms.
One of the most credible studies done on the Management accounting practices (MAP) is
cited as Abdel-Kader and Luther conducted in 2006 to study the MAP in the food and drinks
industry in the UK. They studied the relationship between the development of management
accounting practices and explanatory factors. The explanatory factors included external,
organizational and processing factors. They studies the effect of sophistication of different
variables as the use and importance of management accounting practices; costing systems,
budgeting, performance evaluation, information for decision making, strategic analysis and
communication of management accounting information on the management accounting
practices amongst the organization. They finally concluded that as the uncertainty in the
environment increases, so as the sophistication of the MAP being followed in the
organization. Although their study concluded that there was not direct relation between the
sophistication of MAP and the value creation. But there were indications that different stages
of MAP can be used to increase the value.
Another study cited in this regard is Anand et al. (2004). The purpose of this study was to
understand the development of cost accounting practices being followed in the corporate
sector in India. They also studied the motivation of the managers to use of standard cost
accounting practices against the traditional costing system.
Another notable study on the MAP is cited as Wijeywardena and Zoysa. (1999), their study
covered the organization in Australia and Japan. They tried to study the comparison of MAP
techniques in different cultures. Major cultural differences identified in the study were
collective decision making, unique company philosophy, usage of small firms as sub
contractors, company specific cost accounting training for each employee, and the difference
in educational background of management accountants as seen in Japan compared to
Australia.

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RESEARCH DESIGN AND METHODOLOGY

Purpose of the Study
The type of study that we have conducted is Exploratory and Descriptive.

Nature of the Study

The data gathered from the research is quantitative in nature.

Source of the Study

A primary research has been undertaken in order to collect first hand data.

Unit of Analysis
We have chosen a sample of 4 Questionnaires for our survey collected from 4 different
companies, 1 Questionnaire from each company. Namely, HinoPak Motors Ltd., Dewan
Automotive Engineering Ltd., Mandviwala Mauser Plastic Industries Ltd. & Highnoon
Laboratories Ltd., which consists of only Finance department employees. We will have
employees convenience sampling, as who will be available, willing and have the time to fill
out the questionnaire.

Data Collection Methodology

We have used questionnaires and survey method as to collect the data for our research. The
questionnaires that we used were self administered.

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DATA ANALYSIS AND INTERPRETATION

1. HinoPak Motors Ltd.
Q13:

Strongly Agree
Agree
Uncertain

The given figure shows the positive encouragement of employees involvement in decision
making.

Q9: Analysis of the Costing Techniques Usage

In HinoPak motors Ltd. The analysis shows that the Quality Costing technique is Agree
to have a Some usage and implication in the company. whereas there is a contradiction of
views regarding Life-Cycle Costing usage. In the view of the analysis Activity Based
Management and Cost Volume Profit Analysis have a little usage in costing techniques in this
organization.

Q14 (a): Managements Involvement in Identifying Problems and

Proposing Objectives
The research result point out the level of management that is currently involved in the process
of problem identification and proposing solutions to those problems. The respondents agree
that Operational manager is responsible for these sorts of duties.

Q14(e): Managements Involvement in Taking the Necessary Actions to put

Changes in Place
The result of this study shows that the most of the times, Top Management & operation
managers is directly involved in decision making and the related conclusion of the decision
and therefore it shows that the approach towards decision making is centralized in HinoPak
motors Ltd.
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2. Dewan Automotive Engineering Ltd.

Q13:

Strongly Agree
Agree
Uncertain

The given figure shows the positive encouragement of employees involvement in decision
making in Dewan Automotive Engineering Ltd.

Q9: Analysis of the Costing Techniques Usage

In Dewan Automotive Engineering Ltd. The analysis shows that the Quality Costing
technique is agree to have a somewhat usage and implication in the company. whereas there
is a contradiction of views regarding Life-Cycle Costing usage. In the view of the analysis
Activity Based Management and Cost Volume Profit Analysis have a little usage in costing
techniques in this organization. Whereas Activity Based Costing have a great usage in costing
technique.

Q14 (a): Managements Involvement in Identifying Problems and

Proposing Objectives
The research result point out the level of management that is currently involved in the process
of problem identification and proposing solutions to those problems. The respondents agree
that Operational manager & Front Line Supervisor are responsible for these sorts of duties.

Q14(e): Managements Involvement in Taking the Necessary Actions to put

Changes in Place
The result of this study shows that the most of the times, Top Management is directly
involved in decision making and the related conclusion of the decision and therefore it shows

Page 17

that the approach towards decision making is centralized in Dewan Automotive Engineering
Ltd.
3. MANDVIWALA MAUSER PLASTICS INDUSTRIES LTD.
Q13:

Agree
Uncertain

The given figure shows that employees involvement in decision making is some what
uncertain.

Q9: Analysis of the Costing Techniques Usage

In Mandviwala Mauser Plastic Industry Ltd. The analysis shows that the Quality Costing
technique is agree to have a greater usage and implication in the company. whereas there is a
contradiction of views regarding Life-Cycle Costing usage. In the view of the analysis,
Activity Based Management and Cost Volume Profit Analysis have a little usage in costing
techniques in this organization. Target Costing usage have a very great deal in this
organization. And ABC cosing usage have a great deal.

Q14(a): Managements Involvement in Identifying Problems and Proposing

Objectives
The research result point out the level of management that is currently involved in the process
of problem identification and proposing solutions to those problems. The respondents agree
that middle manager & Operational manager are responsible for these sorts of duties.

Q14(e): Managements Involvement in Taking the Necessary Actions to put

Changes in Place
The result of this study shows that the most of the times, Top Management is directly
involved in decision making and the related conclusion of the decision and therefore it shows
that the approach towards decision making is centralized in Mandviwala Mauser Plastic
Industry Ltd.
Page 18

4.HIGHNOON LABORATOTIES LTD.

Q13:

Srongly Agree
Agree
Uncertain
Disagree

The given figure shows the positive encouragement of employees involvement in decision
making.

Q9: Analysis of the Costing Techniques Usage

In HighNoon Laboratories Ltd. The analysis shows that the Quality Costing technique is
some what agreed to have a greater usage and implication in the company. whereas there is a
contradiction of views regarding analysis Activity Based Costing, Activity Based
Management. In the view of the analysis Target Costing usage and Cost Volume Profit
Analysis have a little usage in costing techniques in this organization. Where as Life Cycle
costing has some usage in organization.

Q14 (a): Managements Involvement in Identifying Problems and

Proposing Objectives
The research result point out the level of management that is currently involved in the process
of problem identification and proposing solutions to those problems. The respondents agree
that Top Management is directly involved in these sorts of duties.

Q14 (e): Managements Involvement in Taking the Necessary Actions to put

Changes in Place

Page 19

The result of this study shows that the most of the times, CEO & Top Management is directly
involved in decision making and the related conclusion of the decision and therefore it shows
that the approach towards decision making is centralized in Highnoon Laboratories ltd.

CONCLUSION
According to this study the four different manufacturers we perform analysis was concided,
observing the modern technology and quality costs money, Activity-Based Costing and some
weak activity to use based on management's implementation, how to control and cost
management data is less emphasis on planning and indicators. in spite of the use of the data
determine the cost of poor, since it is also determined outcome suggests that the local
administrator a level of around unrestrained. This element, applying a force to the employee,
and maintain a healthy environment, active participation can be better by assistance due. Do
not simplify the results of this research, you cannot be a true sign of all four manufacturers.
More research is needed to understand clearly.

Limitations of the Study

The current research is restricted by its methodology. Companies may have understatement
or overstatement significant details and information due to privacy and secrecy concerns. Any
under or over statement would only serve to bound the inconsistency of the information,
which would make it less likely to find significant results. The research is also limited in its
scope and possibility due to time and cost constraints.

Page 20

REFERENCES
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performance in Nigerian manufacturing companies: A contingency theory
perspective. British Journal of Arts and Social Sciences , 2046-9578, Vol.14 NoII.
Breuer, A., Frumuanu, M. L., & Manciu, A. (2013). THE ROLE OF MANAGEMENT
ACCOUNTING IN THE DECISION MAKING PROCESS: CASE STUDY CARA SEVERIN
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