Cost allocation practices in family-owned Businesses in Zimbabwe: a study on these businesses in Mashonaland East province
- Author
- Dzapasi, Fortunate.
- Title
- Cost allocation practices in family-owned Businesses in Zimbabwe: a study on these businesses in Mashonaland East province
- Abstract
- The purpose of this study was to examine cost allocation practices in family-owned retail enterprises in Mashonaland East Province, Zimbabwe. The objectives were to assess the current cost allocation practices used by family-owned businesses in Zimbabwe, identify the challenges and barriers faced in implementing effective cost allocation practices, analyse the impact of these practices on the financial performance and sustainability of family-owned enterprises and finally to provide recommendations to improve cost allocation practices for enhanced operational efficiency and profitability. The researcher used a mixed- methods explanatory sequential design, which makes use of both quantitative and qualitative methods and collects primary data through structured questionnaires and semi-structured interviews. Stratified random sampling and purposive sampling methods were used and the sample comprised 12 interview respondents and 170 questionnaire participants. Data presentation and data analysis were conducted using MS Excel and presented using descriptive statistics and Spearman’s correlation. The findings indicated that Zimbabwean family-owned Small to Medium Enterprises prioritize, survival-oriented cost allocation over formal systems, balancing socioemotional wealth preservation with operational efficiency. While direct methods enhance short-term viability, over-reliance on informal governance restrain scalability and environmental responsibility. Recommendations include formalizing critical allocations and policy interventions for Small to Medium Enterprises training and provision of grants.
- Date
- October 2025
- Publisher
- BUSE
- Keywords
- Cost allocation
- family-owned Businesses
- Mashonaland East Province
- Supervisor
- Nil
- Item sets
- Department of Accountancy
