MANAGEMENT ACCOUNTING PRACTICES AND PERFORMANCE OF MANUFACTURING FIRMS IN THE LAGOS METROPOLIS
This study explored the management accounting practices among manufacturing firms in the Lagos Metropolis and examined the impact of its adoption on firm performance. The benefits firms derive from implementing management accounting practices, factors that affected the extent of use of management accounting practices and the relationship between the use of management accounting practices and firm performance are discussed in the study. A questionnaire was administered to 150 manufacturing firms in the Lagos metropolis which elicited 105 useable responses.
The results show that costing system, budgetary system, performance evaluation system and strategic management accounting are the key management accounting practices adopted by manufacturing firms within Lagos metropolis. Also, the key benefits associated with management accounting practices of manufacturing firms in Lagos can be seen from the following areas: planning the future strategies, tactics and operations, controlling current activities, measuring and evaluating performance, optimizing the use of firm’s resources, reducing subjectivity in the decision making process and improving internal and external communication.
It is evident that key determinants of the extent of adoption of management accounting practices include market competition, characteristics of the accounting staff, owner/manager participation and changes in technology.
Overall performance of selected manufacturing firms in Lagos metropolis is relatively high. It is therefore recommended that management accounting practices in the manufacturing firms in Lagos should be strengthened to enhance performance.