Effects of Management Accounting Practices on Financial Performance of Small and Medium Enterprises in Gusau Metropolis of Zamfara State, Nigeria

Abstract

This study focused on the effects of management accounting practices on financial performance of Small and Medium Enterprises (SMEs) in Gusau Metropolis of Zamfara state. The study considered some SMEs in Gusau metropolis of Zamfara state. Survey and correlation research design was used for the study. Twenty (20) SMEs were selected and in which each SME five (5) top management staff were also selected as they have adequate knowledge to response to the questionnaire of this study. Primary data was employed in gathering data for the study through structured questionnaire. The data collected were analyzed through SPSS 16.0. Financial performance serve as dependent variable while costing, budgeting and performance evaluation serves as independent variables. The result of the study shows that the costing, budgeting and performance evaluation has a positive and significant influence on financial performance of SMEs in Gusau metropolis of Zamfara state. The study recommends that the owners and managers of Small and Medium Enterprises in Gusau metropolis of Zamfara state should adopt the use of costing practice in their operations as this will help them to know the product unit cost and it will assist them in fixing unit price of their product at a profitable rate.

Keywords: Budgeting, Costing, Financial Performance, Performance Evaluation.

DOI: 10.7176/RJFA/10-11-03

Publication date:June 30^th 2019