An Assessment of the Effect of Management Accounting Practices on the Performance of Small and Medium Enterprises (SMEs) in Lusaka, Zambia
DOI:
https://doi.org/10.5281/zenodo.11118520Keywords:
implementation, management accounting, practices, smes, assessing, impact, process change, revenue banking, financial performance, zambia, zambiaAbstract
The study aimed to assess how Management Accounting Practices (MAPs) impact the performance of Small and Medium Enterprises (SMEs) in Lusaka, Zambia, focusing on those in the Mtendere Township market. Research objectives included understanding existing practices, analysing their usage in measuring financial performance, and describing implementation limitations. A cross-sectional approach was employed, utilising a self-administered questionnaire. Out of 132 respondents, 85 returned complete questionnaires for analysis. Microsoft Excel and SPSS 26.0 was used for data analysis, focusing on descriptive statistics and means.
Findings revealed SMEs in Mtendere Township employ various Management Accounting Practices, with Flexible Budgeting being most prevalent, followed by strategic approaches like Competitor Monitoring and Decision Support Tools such as Break-even Analysis. Activity-Based Costing was notably less utilised, while Standard Costing and the Balanced Scorecard saw lesser implementation. Management Finance and Target Costing were the least utilised methods.
Challenges to implementing Management Accounting Practices included limited involvement from accounting personnel and CEOs' insufficient comprehension of such practices, production scale, organisational changes, and corporate strategy. Competitive pressure from other businesses was deemed the least significant barrier. These findings emphasise the diverse application of management accounting practices among SMEs in Mtendere Township and highlight areas for improvement in implementing these practices effectively.
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Copyright (c) 2024 Karen Mwansa Kabamba, Bupe Getrude Mutono-Mwanza, Lubinda Haabazoka
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