Evaluation of Management Accounting Practices of MI Cement Company Limited: A Case Study

Abstract

In recent years, the Bangladesh cement industry is growing up comparing the other leading countries in Asia. By following this sequence, according to the report of Wikipedia which is mostly prepared based on "List of countries by cement production" in Hydraulic Cement Production– Asia & The Pacific, Bangladesh has occupied the third position in producing cement in the sub-continent of Asia. This happens only for the efficient and proper utilization of the management accounting practices in the cement manufacturing industry. The success of the industry mostly depends on those taken decisions which are most relevant to achieve the goal of this firm, therefore, these should be strategically different from the competitive market and they will lead to dominate the market for a longer period by getting competitive advantages rather than other leading companies.Nowadays all institutions are related to utilizing management accounting systems to assist managers in making a sound decision to achieve the goals of the organization. Thus, the necessity of management accounting has risen not only in the manufacturing industry but also service industry (Chenhall and Langfield-Smith, 1998; Abdel-Kader and Luther, 2006; Paggios and Pavlatos,2008; Ahmad, 2012). For making a rational decision, management tools and techniques are used to obtain proper & accurate information (Alleyne and Marshall, 2011). Among various rising industrial sectors in Bangladesh, the Cement industry is considered one of the greatest foreign currency earning sectors that contribute to the economic growth of Bangladesh (Md. Khalilur, Al Amin, Md. Abud, 2017). After fulfilling the demand of the local market every year, Bangladeshi leading cement company, MI Cement Limited which is one of the top cement exporters, export cement to the global countries including Europe and some other western countries. Unexpectedly, the implementation of management accounting practices in developing countries like Bangladesh remains unpleasant and studies on this field are very infrequent (Lin and Yu, 2002). Therefore, the study is designed to make an overview of the practices of management accounting especially on MI Cement Limited which has already taken up the significant position of cement manufacturing companies in Bangladesh. Keywords: Management, Managers, Tools, Performance, JIT, Differential costing, Target Costing. DOI: 10.7176/EJBM/13-18-09 Publication date: September 30 th 2021