Abstract
Research Question: What is the association between the choice of contemporary cost management methods and enterprise and employee characteristics? Motivation: Modern techniques of cost accounting assist strategic management of contemporary organization to achieve their strategic objectives. External versus internal, long-term unlike short-term perspective is what differentiates the strategic cost management approach from the traditional cost management system. We draw on previous studies in order to examine the impact of organizational and employee characteristics on the adoption of contemporary cost management methods given the lack of research data in developing countries like North Macedonia. Idea: This research examines the usage of contemporary cost management methods by textile companies headquartered in North Macedonia and encompasses five strategic cost management techniques: activity based costing, product life-cycle, target costing, competitive advantage style and value chain analysis. Also, the study looks into the association of certain organizational characteristics with the implementation of contemporary cost management techniques and compares the findings to the conclusions reached by authors like Rossi (2014), Haldma and Laats (2002), O’Connor et al. (2011). Data: The field work is based on a questionnaire distributed to companies from the textile industry. Tools: We analyze a sample of 46 surveys (response rate of 81 percent): one survey per garment company. Findings: Even though the initial assumption was that textile enterprises in North Macedonia do not apply contemporary cost management methods in strategic management of operations, the research proved the opposite to be true. However, the use of a chosen method does not depend on demographic characteristics of the respondents or company capital. The search for an implementation motive should be expanded and sought after in the operational and process features of entities. Contribution: This study is expected to increase the awareness about contemporary cost methods and to broaden the understanding of the relationships between organizational and employee factors and management accounting techniques employed.
Highlights
In recent years, economic trends have developed new and effective approaches and implementations in cost management in the business environment
The key aim of the current study is to examine the usage of contemporary cost management methods in textile companies in North Macedonia with a particular focus on employee demographics and organizational characteristics
Given that the hypotheses were proven to be statistically insignificant, one can conclude that the adoption of a specific cost management method does not depend of demographic characteristics of employees or company capital which may be driven by the wide-spread use of select techniques by the industry
Summary
Economic trends have developed new and effective approaches and implementations in cost management in the business environment. The adoption of new methods and techniques in cost accounting and management accounting becomes a demand for facilitation of strategically-orientated decision-making in the companies in developing countries, as well. New cost management trends are not used in North Macedonian enterprises as much as in countries with developed economies due to the fact that North Macedonian enterprises are not well familiarized with new techniques that may have a positive impact on enterprises (Srbinoska, 2017; Spaseska et al, 2014). The results of analysis of selected organizational factors for determining the decision of adoption of such techniques in the companies may offer an answer on the underuse of contemporary cost technics in the range of companies within the same or different sectors
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