The Impact of management accounting practices on corporate performance: a case study of Hammer and Tongues Africa Holdings (pvt) ltd
- Author
- Mhlanga, Gift
- Title
- The Impact of management accounting practices on corporate performance: a case study of Hammer and Tongues Africa Holdings (pvt) ltd
- Abstract
-
The purpose of this study was to look into the impact of management accounting practises on corporate performance using Hammer and Tongues Africa Holdings as a case study. The study's research questions were: what management accounting practises are in existence, to what extent are these practises being used, what problems are associated with these practises, and what impact do management accounting practises have on corporate performance. This study used a qualitative descriptive approach as its research design. The target group for this study was 12 employees in the organisation who are familiar with management accounting techniques. As a research tool, the interview approach was used to collect primary data. Only 8 employees out of a total of 12 were able to participate in the interviews, resulting in a response rate of 75% with responses from various positions and departments within the company. The data was analysed using SPSS and MS Word, which are software that accommodate qualitative data analysis. Budgeting and cost volume profit analysis were found to be the most common management accounting practises at Hammer and Tongues. The most commonly utilized budgets are the sales budget, purchasing budget, and the statement of financial position budget. To maximise revenue, cost volume profit analysis is used. Lack of support from top executives, a lack of workers with necessary capabilities, and a lack of required infrastructure to execute current processes are further challenges they face in terms of management accounting practices. The researcher suggests that they adopt modern budgeting practises such as an integrated budgeting system that allows everyone to participate in the budgeting process. They should also educate their frontline employees in management accounting so that they can participateas well, giving top management more time to focus on strategic plans and improving corporate performance. A budgeting system should also be utilised as a metric for evaluating performance and a tool for achieving financial goals.
- Date
-
June 2022
- Publisher
- BUSE
- Keywords
- Management accounting practices,
- Corporate performance,
- Supervisor
- N/A
- Item sets
- Department of Accountancy
