DETERMINANTS OF MANAGEMENT ACCOUNTING PRACTICES BY MANUFACTURING FIRMS

Abstract

The impact of the management accounting practices on manufacturing firms in the developing countries cannot be overlook. Management accounting practices adopts and put to practice by these firms has always yielded result, but before management accounting practices are adopted by these firms there are factors that determine their adoption. This paper purposely looks into factors that determine the adoption of management accounting practices by manufacturing firms in Ghana. Various literatures has brought to light that that both internal and external environmental factor such firm size, market rivalry (competition), level of qualification of accounting staff and advanced production technology as the major factors that affect MAPs adoption and want to make analysis with Ghanaian manufacturing firms does these factors affect their choice of MAPs This study gathered Data from 200 manufacturing firms in Ghana through questionnaires and regression analysis were done using SPSS to determine the impact these factors have on the adoption of MAPs by these manufacturing firms in Ghana. The study identified determinants such as, firm size, market rivalry (competition), level of qualification of accounting staff and advanced production technology has a positive significant impact on the adoption of management accounting practices by manufacturing firms in Ghana. The study recommends that it is important for organizations to identify the best MAPs which can be include in the firms operations to improve performance and longevity of the organization KEYWORDS: Ghana, Management accounting practices, firm size, market rivalry (competition), qualification of accounting staff and advanced production technology