Traditional Vs. Contemporary Management Accounting Practices and its Role and Usage across Business Life Cycle Stages: Evidence from Pakistani Financial Sector

Ashfaq, Khurram; Younas, Sohail; Usman, Muhammad; Hanif, Zahid

doi:10.6007/ijarafms/v4-i4/1285

Cited by 12 publications

(9 citation statements)

References 21 publications

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“…However, Rababa'h, (2014) pointed out a lack of usage of contemporary decision making and strategic analysis practices in the Jordanian financial sector. Moreover, other studies indicated low adoption of ABM, value chain, customer profitability analysis and product life cycle analysis (Ashfaq et al (2014); McLellan (2014)) On the other hand, some studies indicated that some of these CMAPs were widely adopted such as customer profitability analysis (Mbawuni & Anertey, 2014) In Egypt, the same conclusion has been reached in the study conducted by Ismail and Eid (2007) to examine the class manufacture practices (WCM) as an innovative MAPs.They justified adoption of JIT, TQM and MRP in the Egyptian manufacturing companies by the motivation of these companies to gain competitive advantages.Thus, these items were added to MAPs research list as decision support practices.…”

Section: Decision Making Supportsupporting

confidence: 52%

“…Budgeting practices were the predominate practice in the management control systems of American businesses (McLellan, 2014) and (Abdel-Kader & Luther, 2006) in UK. Moreover, in other less developed countries such in Ghana (Mbawuni & Anertey, 2014) Pakistan (Ashfaq, Younas, Usman, & Hanif, 2014); Vietnamese (Ngoc Phi Anh et al, 2011). In Greece,budgeting for planning financial position, and budgeting for controlling costs have been ranked highly in usage before and during the crisis.…”

Section: Planning and Budget Practicesmentioning

confidence: 99%

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Adoption, Importance and Barriers to the Implementation of Contemporary Management Accounting Practices: Evidence from Egypt

Hussein

2017

AFR

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In present times, complexity in the business environment, and advanced technology has intensified the challenges for more management accounting information to meet global competition. Therefore, contemporary management accounting practices (CMAPs), which focus on financial and non-financial information, have emerged to support managers' decision-making processes. This research is aimed at examining the adoption, importance and barriers to the implementation of contemporary management accounting practices. To achieve its objectives, the research conducted a survey and collected data on forty MAPs. The methodology of the study relied on factor analysis to identify and group different variables into the main factors that contribute to MAPs. In terms of MAPs adoption, the results indicated 9 factors: fundamental traditional management accounting practices (TMAPs); control; world class manufacture (WCM); performance evaluation non-financial; budgeting for planning cash flows; contemporary decision support; traditional decision support; planning and capital budget practice. In terms of importance there are 10 factors; benchmarking practices; costing and decision support; fundamental TMAPs; traditional performance evaluation; control; contemporary performance evaluation; budget for planning day to day; WCM -MRP practice; product life cycle practice and performance evaluation -customer satisfaction. The main conclusion was that the relative adoption of TMAPs is higher than CMAPs. However, Egyptian companies are realizing the importance of large number of CMAPs. Moreover, the research revealed that the key barriers limiting the implementation of CMAPs were the length of time it took to change the societal values and practices, the high degree of uncertainty avoidance and the high cost implementing these advanced practices.

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Section: Decision Making Supportsupporting

confidence: 52%

Section: Planning and Budget Practicesmentioning

confidence: 99%

Adoption, Importance and Barriers to the Implementation of Contemporary Management Accounting Practices: Evidence from Egypt

Hussein

2017

AFR

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“…Regarding whether final budget authorizing officers are normally involved to ensure resources not mishandled, 33.7% and 27.4% agreed and strongly agreed respectively with a mean value of 3.52. The results are in agreement with another study by Ashfaq et al (2014) who found that firms used relevant authorization officers to ensure accountability. Results also show that 38.9% and 30.5% agreed and strongly agreed that evaluation and auditing of finances are subjected to qualified external auditors with a mean score of 3.77.…”

Section: Descriptive Statisticssupporting

confidence: 92%

Management Accounting Techniques and Firm Performance of Major Construction Companies in Nigeria

Asikogu

M’ithiria

Omurwa

2021

JFA

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To remain competitive, construction companies must continually improve and one way is by use of the right MATs. The adoption of MATs can help organizations to improve their financial performance continually and consequently overall national economic development. This study investigated influence of management accounting techniques on the firm performance of construction companies in Nigeria. The objectives were, to assess firm performance level of construction companies in Nigeria, to examine the influence of activity-based costing (ABC), strategic analysis, and budgeting practices on firm performance. The study used quantitative research design while the target population was all the 35 major construction firms. The sample size was 13 companies. The research used questionnaire to gather data from 170 managers. The study used descriptive statistics and inferential analysis. The study found that ABC, strategic analysis, and budgeting practices had positive relationship with firm performance. The study concludes that the companies employed ABC to improve firm performance. The study concludes that most companies used both internal and external analysis to improve performance. The study concludes that many companies failed to involve all departments during budgeting. The study recommends that companies should increase resources to complete projects within stipulated time frame. The study recommends that the policies should be enhanced by conducting researches and regular evaluation to improve business environment for the realization of improved performance of the construction companies. Key words: Management Accounting Techniques, Activity-Based Costing, Firm Performance, Strategic Analysis, and Budgeting Practices

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“…Also, researcher believes that there is a need to ensure the existence of an active administration structure which is the main and most important reason for the success of applying the modern MAPs, moreover, the necessity to train employees before the adoption of MAPs in order to benefit from these techniques ideally. Ashfaq, et al (2014) the study examined the level of using MAPs in service sector in Pakistan represented by Insurance, Banking, telecommunication and computer service companies. Investigation made to assess the use of MAPs in companies which are moving from growth to maturity stage.…”

Section: Previous Studiesmentioning

confidence: 99%

The Extent Use of Contemporary Management Accounting Practices and Its Effect on Operational Performance of Industrial Corporations in Jordan

Alzoubi

2018

AJFA

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The purpose and aims of this study is to illustrate the extent use of contemporary management accounting practices MAPs in the Jordanian industrial corporations listed on Amman Stock Exchange ASE, and an attempt to find out the most common practice used. A field study conducted by using a questionnaire distributed to accountants working in 25 different industrial corporations, a total of 75 questionnaires distributed, 52 were valid for analysis purposes. The financial data related to the operational performance were collected for the periods 2013-2016. The study used arithmetic mean and standard deviation to describe the study sample and determine degree of implementation of contemporary MAPs.Multiple regression analysis used to detect the effect of MAPs on each indicator of operational performance.Results of the study showed a moderate use of contemporary MAPs, such as Target costing, Kaizen costing and Just-in-time manufacturing, moreover a least used practices were Activity base costing and Balance scorecard, and analysis revealed a different effect of applied contemporary MAPs on operational performance indicators, an effects on inventory turnover rate is observed, and no statistically effect on operational ratio, receivables turnover and total assets turnover. Worthwhile, the researcher proposed a number of proposals and recommendations, emphasis in reconsideration of application mechanism of contemporary MAPs applied in the corporations, and activate the role of various contemporary MAPs used as an information system, which could assess the corporate managers and decision-makers serving the management's objectives in the industrial corporations.

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Traditional Vs. Contemporary Management Accounting Practices and its Role and Usage across Business Life Cycle Stages: Evidence from Pakistani Financial Sector

Abstract: The research examines the management accounting practices and its level of usage in

Cited by 12 publications

References 21 publications

Adoption, Importance and Barriers to the Implementation of Contemporary Management Accounting Practices: Evidence from Egypt

Adoption, Importance and Barriers to the Implementation of Contemporary Management Accounting Practices: Evidence from Egypt

Management Accounting Techniques and Firm Performance of Major Construction Companies in Nigeria

The Extent Use of Contemporary Management Accounting Practices and Its Effect on Operational Performance of Industrial Corporations in Jordan

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