Management Accounting Systems Changes and PracticesAdopted by Large Manufacturing Companies in Nairobi Kenya

Abstract

Better decisions and improved efficiency and effectiveness of existing
operations are always attributed to the information provided by
management accounting systems(MASs) in an organization. Based on
Drury ' s (2008) suggestion for practice and theory in management
accounting, this study explores the practical sense of management
accounting by focusing on the potential influence of contextual
variables on management accounting practices (MAPs) in large Kenyan
manufacturing companies located in Nairobi. To compete successfully
in today ' s highly competitive global environment, companies are
adopting new MAPs, changing their manufacturing systems and
investing in new technologies. This study focuses on the changes in
MAPs and how such changes have been adopted by large
manufacturing companies in Kenya. The findings indicate that many
changes have taken place in management accounting techniques in
the surveyed companies. Both traditional and advanced management
accounting techniques are used by the surveyed organizations.
Advanced management accounting techniques, notably, customer
satisfaction, quality and innovation and on-time delivery, have been
adopted, while traditional management accounting techniques, notably,
incremental budgeting, variable costing, standard costing and variance
analysis, sales and return on investment, are being maintained.
Regarding changes in management accounting techniques the study
established that the majority of the responding organizations indicated  changes relating to the introduction of new techniques as replacements,
modification of information or output of its MAS and the introduction
of new techniques where none existed.

Key words:  Management Accounting Systems, Practices, Adoption, Large
                    Manufacturing Companies, Kenya