PERFORMANCE THROUGH MANAGEMENT ACCOUNTING PRACTICES: A STUDY OF MICROFINANCE COMPANIES IN NEPAL
Date
2024
Authors
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Journal ISSN
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Publisher
Shanker De Campus
Abstract
Banks can gain a competitive edge in the market and provide their customers with
superior goods and services by implementing management accounting. This study aimed
to examine the impact of management accounting techniques on the performance of
microfinance companies, focusing on those in Nepal. A descriptive research design was
employed for this investigation. The study's target population comprised all 55
microfinance companies, encompassing top, middle, and lower-level management
personnel. Convenience sampling was used to ensure an unbiased and representative
selection, which was essential for making valid inferences from the study's results.
The study distributed 400 questionnaires to gather primary data due to its efficiency and
simplicity, given the constraints of time and resources. A descriptive research design was
employed, focusing on four "D" class microfinance companies in Nepal. Additionally,
three microfinance companies were included in the study. Respondents contributed
primary data, which was quantitative in nature. Data analysis was conducted using IBM's
Statistical Package for Social Sciences (SPSS 23.0), allowing the researcher to present the
findings in tables and figures.
According to the study's findings, the most popular management accounting technique
among Nepal's microfinance companies is using information for decision-making.
Budgeting, performance evaluation, costing, controlling, and decision-making are the
next most popular activities. As the most popular management accounting technique
among Nepal's microfinance companies, this study suggests raising and promoting
awareness among businesses of the value of information for decision-making processes.
Key Words: Accounting, Budgeting, Performance, Costing, Controlling, Decision making