Management accounting and performance of manufacturing firms in Uganda; a case study of Rwenzori bottling firm.

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Date
2018-09
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Volume Title
Publisher
Kampala International University, College of Economics and Management
Abstract
A Research Report Submitted To The College Of Economics And Management In Partial Fulfillment Of The Requirements For The Award Of The Bachelors Degree of Business Administration (Accounting And Finance) Of Kampala International University
Description
Management accounting offers a good best opportunity for firms to compete in the market in order to offer best quality products and services at affordable prices to consumers. The general objective of this study was to examine the importance of management accounting on the performance of manufacturing firms in Uganda; a case study of Rwenzori bottling Firm. The data collected was both quantitative and qualitative. Qualitative data is a categorical measurement expressed not in terms of numbers, but rather by means of a natural language description. Quantitative data is a numerical measurement expressed in terms of numbers. Data collection methods like interviews, questionnaires were employed. Analysis was done using Statistical Package for Social Sciences (SPSS), these allowed the researcher to present the information in form of tables and figures. The study found out that the budgeting practices were highly used at Rwenzori bottling firm. They included; budgeting for long-term (strategic) plans, zero-based budgeting. Budgeting for controlling costs, flexible budgeting, budgeting with '"what if analysis'', budgeting for planning and activity- based budgeting. Performance evaluation measures were also found to the highly used in the respondents companies. The study found out that information for decision making were used at Rwezori bottling firm. The study showed that the corruption levels had reduced since the introduction of management accounting practices at Rwenzori bottling firm. The reduced level of errors increases the level of customer satisfaction. Due to the rules and regulations that have been put in place at Rwenzori bottling firm process are followed to the letter leading to transparent financial transactions. The study therefore concluded that Information for Decision Making practices is the most highly used management accounting practice amongst manufacturing firms in Uganda followed by Strategic Analysis, Budgeting, and Performance Evaluation respectively. The researcher recommended the creation and enhancement of awareness among manufacturing firms of the importance of management accounting information for decision making practices as this is the most highly used management accounting practice amongst manufacturing firms in Uganda.
Keywords
Management accounting, Manufacturing firms, Uganda, Rwenzori bottling firm
Citation