Management Accounting And Organizational Performance Essay

Accounting consists of several fields. They are financial accounting, management accounting, auditing and taxation. However, the main focus of this research project is the impacts of management accounting practices (MAP) on manufacturing firms’ organizational performances in Sibu. Management accounting involves the process of preparing and providing financial and statistical information such as available cash on hand and up to date sales revenues to managers. This information is useful for managers to make day-to-day managerial decisions. For example, management accounting provides information that helps managers to decide what products to sell, how to source the products and where to sell the products. Therefore, it is clear that management

According to The Law Dictionary, manufacturing firms is any business that transforms parts, components or raw materials into finished goods that meet customers’ demands and expectation. Manufacturing firms produce a wide range of products such as cars, computers, household appliances or automobiles. The most common manufacturing firms in Sibu include producers of furniture, plastics and foods. Besides, Oxford dictionary defines organisation as an organised group of people with a particular purpose while performance is defined to include the action or process of performing a task or function seen in terms of how successfully it is performed. Thus, organizational performance can be defined as the achievement of successful outcomes of the organized group of people in accomplishing organizational goals (James, 2012). With the presence of various management accounting practices (MAP), it usually provides quantitative analysis to organization manager to ensure they have a clear understanding of the firms in order to make the right decision (Vitez, 2016). Organizational performance can also be measured in different ways such as financial performance (return on investment, return on assets, profits), product market performance (sales), and shareholder return (Richard, 2014). Hence, organizational performance acts as a dependent variable in this

Firms need to continuously evolve with appropriate MAP to contribute in Malaysian economy. Every firm needs to adapt suitable MAP to ensure its sustainability in the competitive global economy. Among the research project that had been previously conducted in Malaysia, little research has been done in Malaysia on this topic (Mahfar, 2004). Therefore, it motivates us to carry out this research project in Sibu to have a better understanding on MAP and organizational performance at manufacturing firms in