Management Accounting Practices and Organizational Performance of Manufacturing Firms in Nepal

Abstract

Management accounting offers a best opportunity for firms to compete in the market in order to offer best quality products and services at affordable prices to consumers. The purpose of this study was to investigate the effects of management accounting practices on organizational performance of manufacturing firms with a special focus on manufacturing firms in Nepal. The research design employed in this study was descriptive in nature. For the purpose of this study, the target population consisted of 220 firms where the top, middle or low level management staffs were involved. The convience sampling was representative of the population and offers an unbiased selection which was important in drawing conclusions from the results of the study. The research issued a total of 100 questionnaires. Primary data collection was via a questionnaire as this was an efficient and convenient way of gathering the data within the resources and time constraints. This study adopted a descriptive research design. The target population for this study was the 220 manufacturing companies in Nepal. This study involved 4 manufacturing companies. The study collected primary data from the respondents. The data collected was quantitative. Data Analysis was done using IBM Statistical Package for Social Sciences (SPSS 25.0), allowing the researcher to present the information in form of tables and figures. The study concludes that information for decision making practices is the most highly used management accounting practice amongst the manufacturing companies in Nepal followed by budgeting, performance evaluation, costing, controlling and decision making respectively. This study recommends the creation and enhancement of awareness among firms of the importance of Information for decision making practices as this is the most highly used management accounting practice amongst the manufacturing companies in Nepal.