Please use this identifier to cite or link to this item: https://hdl.handle.net/10321/4315
Title: Evaluation of the usage of management accounting practices in KwaZulu-Natal retail stores
Authors: Mungusa, Penuel 
Keywords: Barriers to management accounting practices;Management accounting practices;Cost-management practices;Management accounting change;Cost and management accounting
Issue Date: 31-Mar-2021
Abstract: 
The purpose of this study is to evaluate the extent at which the usage of management accounting
practices (MAPs) facilitate the flow of information for internal reporting in KwaZulu-Natal (KZN)
retail stores. An Organization where management accounting is applied has undergone severe
changes in the management and running of its operations. Earlier, many organisations that did
not adapt to the changes had undergone liquidation, down-sizing and many others suffered huge
irrecoverable losses. In developed countries, researchers confirmed that large number of
companies have adapted to these changes brought up with new MAPs; while in contrast,
developing countries such as South Africa, Malaysia, India, etc., are still vulnerable to the changes
due to the excessive usage of Traditional MAPs and factors hindering the usage of MAPs. In South
Africa, there is a lack of considerable studies on the usage of MAPs in the retail industry
comparatively to other industries such as small and medium enterprises, manufacturing, etc. And
considering the strong aspect of competition within the retail industry, the lack of studies and
knowledge provision on the usefulness of MAPs to respond to competitive conditions make this
study more essential, unique and a strong contribution to the MA body of knowledge literature.
And also many large retail stores dominated by a massive conflict of interests tend not to be
progressive strategically and not willing to adapt to the change in the MA and apply its new
practices; consequently, instead of really addressing the needs of customers rather they just
provide what they think customers needs at higher costs while the usage of MAPs is very essential
in this regard. Therefore, this study has covered these issues and filled the gap in the MA body of
knowledge by achieving the following objectives, which are: evaluate factors hindering the usage
of management accounting practices in KwaZulu-Natal retail stores, evaluate and reveal the
management accounting practices used in KwaZulu-Natal retail stores, determine the change
effect on the practice of Management accounting in KwaZulu-Natal retail stores and reveal the
benefits towards the change in MAPs thereof, and demonstrate the effect of change in the
practice of management accounting in improving competitive conditions, financial performance,
costs and revenues allocation and sustainable information flow in KwaZulu-Natal retail stores.
The researcher administered a total of 105 questionnaires in all 21 sampled retail stores, but only 101 questionnaires were answered (i.e., calculated as 96.2% response rate). This study findings
revealed that KwaZulu-Natal retail stores: are being affected by many barriers hindering the
usage of MAPs, are not using contemporary management accounting practices as taught in
tertiary institutions or universities, but still relying on the usage of many traditional MAPs. It was
further found that KZN retail stores are not benefiting enough from the advantages played by
contemporary MAPs and the MA change implications in retail stores. In addition, the path
coefficient was used to determine the significant relationships existing between the latent
variables developed as hypothesis in this study. The study also found that many KZN retail stores
do not use proper MAPs to allocate costs or revenues to products or activities; in that same
manner, this study suggested and recommended retail stores to use the Activity-based Costing
(ABC) system. This study uses four theories, which are: contingency, agency, Porters’ Five
competitive and stakeholder; in which the mostly applied in this study is the “the contingency
theory”.
Description: 
A Research Thesis Submitted in Fulfilment of the requirements for the award of the Master of Accounting (Management Accounting) Degree, Durban University of Technology, 2021.
URI: https://hdl.handle.net/10321/4315
DOI: https://doi.org/10.51415/10321/4315
Appears in Collections:Theses and dissertations (Accounting and Informatics)

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