THE EFFECT OF COST ACCOUNTING TECHNIQUES ON PERFORMANCE OF SMES
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Abstract
This study examines SMEs and adoption of cost accounting in Nigeria. The objective solely is to determine the extent of adoption of cost accounting (CA) techniques among SMEs. Survey design was adopted to specifically identify the SMEs across the critical sectors of the economy Data were collected using structured questionnaires based on four point modified likert scale measurement. Analysis of data was carried out using the mean descriptive criterion and chi-square statistical tool. The study finds a significant moderate adoption of CA techniques related to cost accounting systems; planning/ budgeting/control systems; a significant high adoption of cost accounting techniques related to decision making purposes, a significant low adoption of CA techniques in pricing policy and management reporting systems. It recommends high adoption of CA techniques related to costing systems, planning/ budgeting/control systems, investment decision making, pricing and management reporting systems. Certainly, these CA techniques would impact tremendously on the performance and sustainability of SMEs in the short and long run.
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