Strategic Management Accounting In Nigeria

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Strategic management accounting (SMA) is concerned with the provisions, application and review of accounting information by the management of an entity with the aim of making business decisions that would create a competitive edge in the market and control the firm’s activity with the aim of achieving profitability. The aim of this study is to investigate if the application of SMA techniques among small businesses in Nigeria can combat business failures prevalence. The study obtained data from fifty (50) small business owners in Nigeria through a cross-sectional questionnaire survey approach through the local chambers of commerce. The findings from the hypotheses tested show that apart from macro-economic challenges, most small businesses do …show more content…

Virtually all the scholars agreed that most firms adopt competitor accounting and strategic pricing among others as the most widely used techniques and a verdict that most accountants are not conversant with SMA especially in developing countries (Ojra, 2014; Fagbemi et al, 2013; Aziz, 2012; Akenbor and Okoye, 2012). Most of the firms are still attached to the inadequacies of MA, and its attendant limitations (Rababa’h, 2014; Upton, 2012; Abdel-Kader & Luther, 2008; Akenbor and Okoye, 2012).The basic distinction between SMA and Management Accounting(MA) is that the former is designed to serve a group of users within and outside the organization and provide them with data and information necessary for them to take decisions related to these organizations , and the latter is the sub-accounting system, which serves the internal management of the organization and assist in performing the functions of planning, control, decision-making and performance evaluation in its operational activities(Ojra,2014;AlMaryani and Sadik,2012; Aziz.2012). Control as a process ensures that intended results are consistently achieved (Yusuf et al, 2012). The process of control (which is provided by tools of SMA) can be summarized as a process of maintaining, evaluating and providing feedback …show more content…

The first hypothesis was analyzed using a survey questionnaire with a - 5 Likert scale response options of Strongly Agreed (SA), Agreed (A), No Effect (NE) Disagree (D), and Strongly Disagreed (SD) with weights of 5,4,3,2 and 1 respectively .It was structured in line with the first research question and hypothesis 1 of the study. Pearson Product Moment Correlation Coefficient was used for data analysis, it measures the relationship between the application of SMAT and small business performance. The survey consisted of 50 identical questionnaires shared among small business owners, business managers and accountants of surveyed firms. All questionnaires were returned, because this researcher personally collected questionnaires one after the other. The list of SMATs used in the questionnaire were developed based on many prior similar studies such as AlMaryani and Sadik (2012); Shah et al.

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