Management Accounting Practices in Nepalese Insurance Companies
Date
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Central Departmental of Management
Abstract
The current aim of the study is to explore the management accountings tools
practiced by insurance companies in Nepal and the impact of management
accounting practices on financial performance.
The study based on primary as well as secondary data. Primary data were collected
through the administration of questionnaires to the staffs in related life insurance
firms. First of all collected questionnaire from respondents and calculate in
aggregate value and percentage. After that plot this value in different statistical tools
like table, graph, and pie-chart and describe the result which is easily understand by
every investor and researcher.
Finally, the result can be concluded that management accounting tools like Capital
Budgeting, strategic analysis were widely practiced in Nepalese insurance
companies. Similarly, Cost-volume-profit Analysis, Cash flow statement, Ratio
analysis, Responsibility Accounting, Activity Based budgeting were moderately
practiced. The other management accounting tools like standard costing and Zerobased
budgeting
were
in
practiced
by
few
Nepalese
insurance
companies.
It
can
also
be
concluded that the main reason for not practicing standard costing in Nepalese
insurance is determination of premium by the insurance regularly board (Beema
Sameeti). In the context, insurance companies are independent to determine the price
(premium) themselves and are in infant stage with respect to the application of
modern management accounting tools.