An Empirical Investigation of the Adoption Status of New Cost and Management Accounting Techniques Among Kenyan Manufacturing Companies.
20 Pages Posted: 21 Jul 2016
Date Written: June 20, 2016
Abstract
The aim of this study was to investigate the adoption status and the challenges of modern management accounting techniques among Kenyan manufacturing companies. A well-structured questionnaire was used to collect the data.56 companies which represent 30% of the population were sampled and 43 of them returned the completed questionnaire. Descriptive statistics, one sample t-test and Spearman correlation were used to analyze the data. It was found out that most of the new techniques have not been adopted as only Total Quality Management, Customer Accounting, Throughput Accounting, and Backflush Accounting have been partially or fully adopted. As touching the difficulties facing the adoption, lack of management support is the most prevailing difficult, followed by lack of awareness of those techniques and preference for financial/historical information. The findings of this study also indicate that manufacturing companies in Kenya currently practices traditional management accounting techniques while some of them use some new techniques alongside. Empirical evidence from this study also suggests a moderate and positive relationship between firm size and adoption of modern management accounting techniques.
Keywords: Accounting, Techniques, Adoption, Management, Cost, Innovation
JEL Classification: M40,M41,M49
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