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

Abstract

Better decisions and improved efficiency and effectiveness of existingoperations are always attributed to the information provided bymanagement accounting systems(MASs) in an organization. Based onDrury ' s (2008) suggestion for practice and theory in managementaccounting, this study explores the practical sense of managementaccounting by focusing on the potential influence of contextualvariables on management accounting practices (MAPs) in large Kenyanmanufacturing companies located in Nairobi. To compete successfullyin today ' s highly competitive global environment, companies areadopting new MAPs, changing their manufacturing systems andinvesting in new technologies. This study focuses on the changes inMAPs and how such changes have been adopted by largemanufacturing companies in Kenya. The findings indicate that manychanges have taken place in management accounting techniques inthe surveyed companies. Both traditional and advanced managementaccounting techniques are used by the surveyed organizations.Advanced management accounting techniques, notably, customersatisfaction, quality and innovation and on-time delivery, have beenadopted, while traditional management accounting techniques, notably,incremental budgeting, variable costing, standard costing and varianceanalysis, sales and return on investment, are being maintained.Regarding changes in management accounting techniques the studyestablished 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 introductionof new techniques where none existed.Key words:  Management Accounting Systems, Practices, Adoption, Large                     Manufacturing Companies, Kenya