Management Accounting Systems Changes and PracticesAdopted by Large Manufacturing Companies in Nairobi Kenya

Abstract

Better decisions and improved efficiency and effectiveness of existing  operations are always attributed to the information provided by
management accounting systems(MASs) in an organization. Based on Drury’s (2008) suggestion for practice and theory in management
accounting, this study explores the practical sense of management accounting by focusing on the potential influence of contextual
variables on management accounting practices (MAPs) in large Kenyan manufacturing companies located in Nairobi. To compete successfully in today’s highly competitive global environment, companies are adopting new MAPs, changing their manufacturing systems and investing in new technologies. This study focuses on the changes in MAPs and how such changes have been adopted by large
manufacturing companies in Kenya. The findings indicate that many changes have taken place in management accounting techniques in
the surveyed companies. Both traditional and advanced management accounting techniques are used by the surveyed organizations.
Advanced management accounting techniques, notably, customer satisfaction, quality and innovation and on-time delivery, have been
adopted, while traditional management accounting techniques, notably, incremental budgeting, variable costing, standard costing and variance analysis, sales and return on investment, are being maintained. Regarding changes in management accounting techniques the study established that the majority of the responding organizations indicated changes relating to the introduction of new techniques as replacements, modification of information or output of its MAS and the introduction of new techniques where none existed.