Advanced Management Accounting Techniques in Manufacturing Firms in Ethiopia

Abstract

In order to survive in the increasing global economic pressure and remain competitive, manufacturing firms are to become more efficient in managing and controlling their costs. This paper examines the level of advanced management accounting practices in manufacturing firms of Ethiopia, and it examines the relationship between some theoretical factors that influence the usage of Advanced Management Accounting Techniques (AMATs). The usage or its advancement level of management accounting techniques increased in the last five years. This implies that the manufacturing firms have awareness about these techniques. To examine the relationship of theoretical factors that affect the usage of AMATs, the paper used Pearson correlation and cross tabulation. As the result from Pearson correlation coefficient indicates, the usage of AMATs and advanced manufacturing technology has strong relationship. With regard to the Traditional Management Accounting Techniques firms widely use and this increased in the last five years. To keep pace with the world’s changing management accounting environment, Ethiopian manufacturing firms should use the newly developed techniques.

Keywords: Advanced Management Accounting Practices in Manufacturing Firms of Ethiopia