Strategic Management Accounting Practices And Decision Making Of Manufacturing Companies In Ghana

Abstract

The study evaluated Ghanaian manufacturing organizations' strategic management accounting, and decision-making processes. The study uses survey and cross-sectional research design and is quantitative and non-experimental. The population of Ghana was created by manufacturing firms. The data collection tool was a structured questionnaire. 250 respondents were chosen using a straightforward random selection procedure. The analysis method that was employed was structural equation modeling. According to the study, balanced scorecards have a very favourable impact on Ghanaian manufacturing companies' decision-making processes. It was identified that target costing had statistically significant positive effect on decision making among manufacturing firms in Ghana. The effect of just-in-time system on decision making within the manufacturing companies in Ghana was found to be positive and significant. The study recommends management of firms should utilize the contemporary management accounting practices in decision making. This calls for management to establish management accounting functions with experienced and qualified management accountants to support decision making. In light of this, management should provide adequate management accounting system to support the efficient and effective delivery of management accounting functions. In order to maintain their professional competence and due care, management accountants should participate in CPD programs offered by organizations like the Chartered Institute of Management Accountants and the Institute of Chartered Accountants.