Abstract
Business organizations face new challenges in the competitive global environment, management accounting is adopted to deploy techniques for achieving efficient operations that deal with competitive advantage. Utilizing different tools and approaches, management accounting generates various financial and non-financial data to support the information needs of organization in the different areas of business. The objective of this study is to determine the extent on how SMEs in the Philippines practice the three major areas of management accounting namely, costing, planning and control, and strategic decision making. The study adopted a descriptive research design employing quantitative method of data collection and analysis. Study was conducted in Quezon province. Out of a sample size of 363 distributed among the 39 municipalities and 2 cities, only 158 participated in the study because they were the only SMEs with Management Accountant. Results show that costing is used to a “Great Extent”, as a management accounting practice in SMEs through the creation of products and services in which cost information sets the guide for the setting of sales prices to determine organizational profits. The management accounting practice of planning and control are used to a great extent by the SMEs which defines the performance to be measured and the provision of feedback keeping the strategic plan on target. The management accounting techniques used by SMEs in terms of strategic decision making are being practiced to a great extent which implies the constant engagement of SMEs in obtaining financial information in order to make strategic decisions effectively for the enhancement of their competitive advantage. The study advocates the use of management accounting practices in the dimensions of cost management, planning and control performance management and strategic decision making, which were found to significantly to impact the gaining competitive advantage and financial performance among SMEs.
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