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 utilised
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 participate
as 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
- Supervisor
- N/A
- Item sets
- Department of Accountancy
