Professional Documents
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Study in management accounting has a long tradition with a diversity of theories being
employed (Scapens & Bromwich, 2010). This study is anchored in the framework of contingency
Contingency Theory
management accounting control systems, it is necessary to consider the circumstances and its
applicability in which they will be used. Since various companies operate in different industries,
the application of some management accounting practices may not be applicable to others. The
company may effectively implement the management accounting practices through identifying the
company’s structure since there is no single general standard management accounting practice can
be applied. Moreover, the company’s objectives are achieved through further development and
Actor Network Theory can be defined as a research method with a focus on the connections
between both human and non-human entities. It describes how these connections lead to the
creation of new entities that do not necessarily practice the sum of characteristics of constituent
entities (Dankert, 2011). It suggest that the resulting impact between management accounting
practices and the overall financial performance of the company are because actions affecting these
changes are brought about by the equal interaction of both human and non- human actants, for
example such combination of management accountants and the advancement of technology will
lead to the creation of a network which can be a factor in assessing the impact of management
accounting practices to the financial performances of the company. However, this does not imply
that it is limited solely on human and non- human actants in assessing the possible correlation of
management accounting practices and financial performance. In the absence of different types of
systems present today including the management accounting system, accountants cannot and will
Conceptual Framework
goal has become important research topic. As management accounting practices are presumed to
provide relevant information for today’s organization, the investigation of the empirical evidences
Undertaking the analysis of firm's financial performance determinants is crucial for the
stakeholders, particularly the investors'. The goal of any company is to ensure that at all times can
maximize the shareholder's value. However, the shareholder's value is determined by some factors:
company's operational risks, projected future earnings and prevailing profitability of a firm (Drury
2013). According to Alumno, Caoile, Cruz and Landayan (2018), financial performance is one of
the most widely used methods in measuring the value of the company. However, it is not enough
to cover the informational needs of the company. Furthermore, non-financial information acquired
through management accounting such as those relating to the company’s efficiency, productivity,
and other financial performance measures are also relevant to the improvement of the company’s
and reports financial and nonfinancial information that helps managers to make decisions,
accounting techniques to assess their operations. These include budgeting, variance analysis and
breakeven analysis. These methods help organizations to plan, direct and control operating costs
Research Design
The methods used to gather, analyze and present the effects of management accounting
practices in the financial performance of the manufacturing companies are descriptive survey
Descriptive research design is used in collecting the data from the respondents. This
research method, also known as statistical research, describes data and characteristics about the
population or particular phenomenon being studied. This design is concerned with answering
questions as who, what, where, when and how. However by nature, descriptive studies do not and
cannot be used to explain causation (Mcnabb 2014). The researcher used this method by giving
survey questionnaires to the proper respondents in gathering information about their extent of
On the other hand, correlational method is a research method in which researchers measure
two variables and assess the statistical relationship between them with no effort to control the
variables. This method is also used to determine the extent to which two variables are related rather
than the extent to which one variable cause changes to another variable. (source)
The researchers view both methods as deemed appropriate to use and the most suitable
financial performance.