Management Accounting Practices in Manufacturing Sector

Abstract

Management Accounting Practices (MAP) offer great opportunity for organizations to compete in the market in order to offer best quality products at affordable prices to customers. The general objective of this study was to investigate the effects of use of MAP on Organizational Performance (OP).This study was designed against the backdrop of observations that the Management Accounting Practices (MAP) in India require to be more pro-active and innovative to provide real time information for managerial decision making and to support strategy initiatives. Perception of Finance and Accounting managers in the Indian manufacturing sector was collected using a structured online questionnaire. The model containing critical variables was validated to identify statistically significant linkages among Organizational Strategy (OS), Organizational Design (OD), adoption of Management Accounting Practices (MAP) and Organizational Performance (OP). The study concluded that the adoption of Management Accounting Practices (MAP) has been found to significantly influence the Organizational Performance.