An Exploratory Analysis of the Importance of Management Accounting Tools in the GCC Countries

Abstract

This article uses a survey of Certified Management Accountants (CMA) in the six Arab Gulf Cooperation Council (GCC) countries to examine the importance that CMAs place on a number of management accounting practices for the efficient operation of their business and to determine the degree of adoption of that management accounting practice by their organization. The findings indicate a large discrepancy between what accountants consider effective management accounting tools and the use of those tools by their companies’ senior management team. Evidence suggests that companies in the GCC rely on the traditional management accounting practices rather than the more recently developed tools. In addition, the management accountants of GCC companies feel that it would be more important for their businesses to emphasis a range of non‐financial tools as well as to adopt a more strategic management focus using tools.