Effect of Management Accounting Practices on the Performance of Nigeria Brewery Plc (2009-2019)
Chapter One
OBJECTIVE OF THE STUDY
This research aims to evaluate the application of management accounting practice in manufacturing firms with particular reference to Nigeria Breweries Plc Enugu. The specific objectives of this project work include the following:
- To ascertain the extent to which Nigerian manufacturing firms apply management accounting practice in their operations.
- To examine the relationship between the application of management accounting practice and the performance of Nigeria Brewery plc
- To evaluate the relevance of management accounting in the development of the Nigerian manufacturing industry.
- To identify the problems associated with the application of management accounting practice in Nigeria Brewery plc.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Management Accounting as a System
Management accounting as a system consist of input process and output components. The input system is data from internal and external sources. The data are manipulated at the process stage on the basis of economic and mathematical principles. The manipulation may also have regard to the accounting principles and organization’s behaviour (Asechemie, 1994). The output consists of various reports to different management levels. These reports will contain information for use in planning, execution and review functions of management and also act as a feedback for corrective measures. Measurement –a part of management accounting functions is the basis of quantitative information. Mock and Grave (1979) points that the first requirement of measurement is reliability and the second is validity and argues further that reliability validity, meaningfulness represents factual view of measurement system. In the accounting literature, information is said to be relevant when it has feedback value (i.e. conveys corrective action that enables corrective actions on the system to be taken) and proactive value (i.e. can be used to predict the future) Mock and Grave term this accounting information view as the purposive view that requires consideration of relevancy and cost effectiveness of alternative measure. Two intervening variables – behavioural (Users) constraints and decision concerns, helps define what information is relevant and cost effective. Management Accounting can combine the factual and purposive view to produce a framework for evaluation and choice of measurement system, which is very important in planning and control in an organization. In this light, accounting provides organization with a system of information processing that involves control in three areas: (a) The setting of targets as the basis for judgment on whether actual performance has conformed to plans. (b) The information processing function which collects data on actual performance and (c) Comparing actual with expected target and report deviations therein to the appropriate manager
Planning and Control
Planning is not only the most basic of all management functions since it involves selecting from among alternative future courses of action. It also determines how the four other functions of management are implemented. Good planning must consider the nature of the future environment in which planning, decision making process and actions are intended to operate since decision making is the heart of planning (Koontz, 1980) Copeland and Descher (1981) defined organizational planning as organizational goal setting. They went further to say that common organizational goals include profit maximization, achieving satisfactory level of performance, continual goals ensuring survival and rendering service by providing goals and services desired by others. It is with this view that emphasis is place on budgeting and budgeting control. Controlling is a management function which according to Koontz and Whierch is the measurement and correction of activities and subordination in order to make sure that organizational objectives and plans are accomplished. Meigs and Meigs (1977) conclude that managerial control includes;
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CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought management accounting practices on performance of Nigeria Brewery plc. (2009_2019).
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information management accounting practices on performance of Nigeria Brewery plc (2009_2019). 200 staff of Nigeria brewery plc, Enugu state was selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain management accounting practices on performance of Nigeria Brewery plc.
(2009_2019). In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of management accounting practices on performance of Nigeria Brewery plc
Summary
This study was on management accounting practices on performance of Nigeria Brewery plc (2009_2019). Four objectives were raised which included: To ascertain the extent at which Nigerian manufacturing firms apply management accounting practice in their operations, to examine the relationship between the application of management accounting practice and the performance of Nigeria brewery plc, to evaluate the relevance of management accounting in the development of Nigerian manufacturing industry, to identify the problems associated with the application of management accounting practice in Nigeria brewery plc. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of Nigeria brewery plc, Enugu state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made HRMS, technical officers, production managers and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
Accounting can act as a motivating factor and can induce better performance if information is promptly given to managers/employees. Also a successful participative budget induces motivation and goal acceptance. It provides information to associate rewards or punishment with performance, which leads to a new aspiration level and motivation that set the stage for the next participation budget.
If accounting is to assist in the development of better managerial accounting techniques, greater effort must be made to utilize findings from behavioural sciences. The implementation of accounting techniques requires proper consideration of human element how the individual interact with the system.
Recommendation
Based on the findings of the study, the following recommendations are made:
- Management should encourage participative management in budgeting in the organization. It can benefit from participation effects since participation can be grafted into existing procedures or changes where necessary. It also changes efficiency, motivation and productivity.
- The impact of the form of feedback of cost accounting reports and the behavioural resolution of its dissonance is clear. Therefore, it is recommended that accounting reports should be designed to provide positive reinforcement to the employees as well as make management aware of poor performance. The process of reporting in order to avoid/change a situation where dissonance may be present should take into account not only the need for information for decision making but also the clues signs for decision making
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- Copeland R.M and Descher P.E: Managerial Accounting 2nd Ed. Canada, John Willey and sons 1981. Hofstede, G.H: The game of budget control.
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- Meigs, W.B and Meigs: Accounting: the Basic of Business Decision 4th Ed. New York Megraw Hill Book Coy; 1997.
- Mock T.Y and Grove K.D: Measurement Accounting and Organizational information New York, John Willey and sons 1979.
