Abstract
The paper has two research goals. The first goal is to investigate the prevalence of certain techniques of strategic management accounting in large companies in Bosnia and Herzegovina (hereinafter BiH), while the second research goal is to analyze the dependence of the number of strategic management accounting techniques used and the degree of development of the cost system in the company. For the purposes of this research, we collected survey questionnaires from 110 large companies based in BiH. The results of the research show that the three most common techniques of strategic management accounting in large companies in BiH are: Quality Costing (52.73%), Strategic Pricing (51.82%) and Benchmarking (50.91%), while the least common techniques are: Life Cycle Costing (11.82%), Attribute Costing and Integrated Performance Management Systems (with 12.73% each), and Activity Based Costing/ Management (17.27%). One-way analysis of variance (ANOVA) tested the differences in the number of strategic management accounting techniques used and the level of development of the cost system in companies. Companies that applied on average two techniques of strategic management accounting belonged to the first level of development, those that applied on average four techniques belonged to the second level of development, while companies that have the third level of cost system development on average applied six techniques of strategic management accounting. There were no companies in the sample with the fourth and fifth level of development of the cost system.
Highlights
Strategic management was created as a result of the increased interest of management to get to know the external environment in which the company operates
Our goal is to investigate how many SMA techniques are used by companies with different levels of cost system development
The classification of Analysis of the prevalence of strategic management accounting techniquesandthelevelofdevelopmentofthecostsystemin 15 large companies in Bosnia and Herzegovina the level of development of the cost system was made on the basis of four criteria: data quality, quality of external financial reporting, structure of cost allocation by cost center and quality of operational/ strategic control (Figure 1)
Summary
Strategic management was created as a result of the increased interest of management to get to know the external environment in which the company operates Such a shift in focus from the internal to the external environment has resulted in the emergence, development and refinement of the strategic dimension of governance. In order to realize strategic management, management decisions must be based on relevant and timely accounting information. This part of the accounting activity is known as Strategic Management Accounting (hereinafter SMA). SMA instruments for strategic planning, control and performance measurement, we objectify through strategic business decision making, are based on a number of associated strategic management accounting techniques. The number of adopted techniques of SMA depends primarily on the needs of management, which forms the backbone of the development of the company's cost system
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