ALJALEXU Volume 4 Issue 3 Pages 1-49

Alexandria Journal
of Accounting Research Third Issue, September, 2020, Vol. 4
Dr. Faisal Alroqy1 The Factors Influencing Cost and

Department of Accounting Management Accounting Practices
Umm Al-Qura University in Manufacturing in Saudi Stock
Kingdom of Saudi Arabia Exchange
Abstract
Cost and Management accounting practices are generally used by management at
various levels. Such tools provide managers with the freedom of choice as they generally
present no constraints, other than the cost of information collected relative to benefits of
improved management decisions. Previous studies have concluded that there are factors
that may affect cost and management accounting practices. The objective of this
research is to study the impact of these factors on cost and management accounting
practices in KSA. The study involves a total of 49 respondents from KSA- industrial
Joint-Stock manufacturing. A questionnaire has been used to collect information about
the use of cost and management accounting tools in practices.
The results of the study revealed the importance of cost information; intensity of the
competitive environment; size of the firm; the quality of information technology; extent
of the use of Total Quality Management approaches; extent of use of lean production
techniques (including JIT techniques); perceived environmental uncertainty; and
qualification of cost and management accounting staff have significant relationships with
cost and management accounting usage.
Keywords: importance of cost information, the quality of information technology,

competitive environment, Total Quality Management, lean production
techniques, uncertainty and accounting staff.
E.mail: [email protected]
1
‫‪Dr. Faisal Alroqy‬‬ ‫……… ‪The Factors Influencing Cost and Management Accounting Practices‬‬
‫ممخص البحث‬
‫يستتدم المدر ت غمللا دط ت لد طيد ت للم لم لمدرد ستتطولمت مغيتتوللمددت ت ديإلار ت لرستتدلي ل مغيتتولرمد تتو ل‬
‫ددتتلالهتتألدلمت لم للمدد طيدت لطدتتل يغلدغيتتولتطيتغدلد رت غملل تتقلمرمديت غلطتتيأللمددت مغ مغ لمدرمد تتولتر ت لدغ ت ل‬
‫مدديل لاأللمدر غملللدل غل قلدت ولمدرع لر لمدرجرعولألم لمدعالقولطد ليغلق مغ مغ لمدر غمل ل ل‬
‫دلص ت لمد مغست ت لمدستت طدولمد تتنلمر تتمليلجت ت لهرت ت بلالمر تتحلقتت لد تتة غل تتقلد طيدتت لمدرد س تتطولمت مغي تتول‬
‫لمددت ديإ لهألدلمد غمسولد إلمدنلطي أللأ غلهألدلمدعلمرحلا نلد طيدت لمدرد ستطولمت مغيتوللمددتت ديإل تقل‬
‫مدرر تتتولمدعغطيتتولمدستتعل يو لمدتتدر لمد مغستتولا تتن‪٩٤‬ايرتتملرتتأللمددتتغت لمدصتتر ايولمدر غجتتول تتقلستتل ل‬
‫متس ت المدستتعل خ لدتتالمتتالحلمد مغستتولدلصي ت لمستتدطي أللد دصتتلحلا تتنل ج ط ت لاتتأللمستتدم مر لمت لم ل‬
‫لمدد طيد لمدم صولط درد سطولمت مغيوللمددت ديإ ل‬
‫رد ت المد مغستتولألمتتد لر ت كلأهريتتولتتتحلرتتألللرع لر ت لمددت ت ديإالد ت لمدرر ستتول تتقلمدستتل الدجتتال‬
‫مددتتغتوالجتتل لرل ت المدرع لر ت ل تتقلمددتتغتوالر ت كلد طي ت لمس ت لدل مغ لمدجتتل لمدد ت ر والر ت كلد طي ت ل‬
‫أست ت ديدلمددص تتري لمدد ي تتولطرت ت ل ي ت ت لأست ت لدلمددص تتري لط د تتدالطي تتولات ت المدد تت ت لمدرالدل تتوالمدرس تتدلخل‬
‫مددع يرقلد رد سطيأللمت مغييأللط ددغت )للاالقد المدلممدولط سدم مر لمدرد سطولمت مغيوللمددت ديإ ل‬
‫الكممات المفتاحية‪ :‬أهريولرع لر لمددت ديإالجل لدترلدلجي لمدرع لر المدطي ولمددر سيوال مغ لمدجل ل‬
‫مدد ر والأس ديدلمددصري لمدد ي والا المدد ت المدرد سطييأللمت مغييأل‬
‫‪2‬‬
Dr. Faisal Alroqy The Factors Influencing Cost and Management Accounting Practices ………
1. Introduction
Several researchers have claimed that there has been a proliferation of management
and cost accounting tools have in the last few decades. The reason behind this increase is
that global business needs these tools to enhance their positions in the market. The
importance of the information which is generated from management and cost
accounting plays a crucial role in enhancing profitability through continuous waste
reduction and effective resource utilization (Ahmad, 2012).
Changes in the global business environment have driven transformation in the
direction of sustainability by focusing on cost efficiency. Management
accounting literature continues to suggest that there are benefits in adopting
management accounting practices in improving business sustainability. Such
literature also proposes that management accounting practices provide various
tools, techniques and valuable internal information, including details for
budgeting, profit planning, and performance evaluation. It is also shaped by
management accounting information system (Azudin & Mansor, 2017).
Waweru, Houge, and Uliana (2005) state that the effect of the market economy,
intensified competition, globalization, limited resources, change and complexity
in the business environment, and accelerating technological changes drive
organizations to realize the need to have objective information. These factors
also make them aware of the need for more detailed cost information. Managers
have the responsibility to continuously ensure that their organizations can
compete nationally and internationally in order to remain sustainable in the
market (Sunarni, 2014). This is a statement supported by Johnson & Kaplan
(1987) who state:
With vigorous global competition, rapid progress in product and process
technology, and wide fluctuations in currency exchange rates and raw material
prices, an organization's management accounting system must provide timely and
accurate information to facilitate efforts to control costs, to measure and improve
productivity, and to devise improved production processes (Johnson & Kaplan,
1987, p4).
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The same authors add:

The management accounting system must also report accurate product costs
so that pricing decisions, introduction of new products, abandonment of
obsolete products, and response to rival products can be made with the best
possible information on product resource demands (Johnson & Kaplan, 1987,p4).
In recent years most organisations have faced dramatic changes in their
business environment. Such changes like deregulation, increasing levels in global
competition, and reductions in product life cycles arising from technological
innovations have intensified the challenges for managers. Considerable changes
have also taken place within the manufacturing environment with the
emergence of advanced manufacturing technologies that have resulted in greater
automation and changes in cost structure involving direct labour costs being
replaced by overhead costs. New management practices have also emerged, such
as the just-in-time management philosophy, lean production techniques, and
total quality management practices (Al-Omiri & Drury, 2007).
Towards the late 1980s, considerable publicity was given to the criticisms of
management accounting, particularly with the publication in 1987 of Relevance
Lost authored by Johnson and Kaplan (1987).The authors claimed that
management accounting practices that were developed in the 1920s had
remained unchanged and were still the dominant practices of the 1980s. They
state:
Given the radical changes in the competitive environment …and rapid
worldwide movement of technology and capital, it is unlikely that the cost
accounting and management control systems devised for the 1925 environment
can still be useful sixty years later (Johnson and Kaplan, 1987, p.205).
Johnson and Kaplan argue that a revolution in management accounting was
required to match the revolution that has taken place in the manufacturing
environment. Based on criticisms from many other commentators besides
Johnson and Kaplan’s (1987), the view that management accounting was in crisis
started to emerge. As a result of the various criticisms, the Chartered Institute of
4
Management Accountants commissioned an investigation to review the current

state of management accounting and the various claims made about it. The
findings were published in a report titled Management accounting: Evolution,
not Revolution, authored by Bromwich and Bhimani (1989).
The authors concluded that:
The evidence and argument advanced by advocates of wholesale changes in
management accounting were not yet sufficient to justify the wholesale revision
of management accounting. Evidence of the benefits of new accounting
techniques and the continued benefits of some conventional techniques is only
beginning to emerge. No general crisis has been identified within the
management accounting profession vis-a-vis a changing manufacturing
environment, and therefore, no radical reforms are recommended at this stage.
Five years later, Bromwich and Bhimani (1994) updated their report with a
second report titled Management Accounting: Pathways to Progress. They
reviewed the literature and research and focused on the broader array of
opportunities facing the management accounting field. They concluded that, in
the UK, no one school of opinion yet dominated the views on the nature of
reforms which might be appropriate for management accounting. The case for
wholesale reform has not been accepted in practice.
In response to the criticisms, considerable attention was given during the
1990s to modifying accounting techniques and implementing innovations that
would enable management accounting to regain its relevance. In particular,
changes have been made to provide managers with the information they need to
compete in today’s changing business environment. Recognition of the changes
have been acknowledged by Kaplan (1994), who states:
The past ten years have seen a revolution in management accounting theory
and practice. The seed of the revolution can be seen in publications in the early
to mid-1980s…..that identified the failings and obsolescence of existing cost and
performance measurement systems. Since that time we have seen remarkable
innovations in management accounting; even more remarkable has been the
5
speed with which the new concepts have become widely known, accepted and
implemented in practice and integrated into a large number of educational
programmes'. (Kaplan, 1994, p.247)
Johnson and Kaplan (1987) place some of the blame for this lack of relevance
on business schools and academic accountants (Scapens, 1991, p. 215). Since this
publication, academics, accountants in businesses and consultants have sought to
develop new management accounting systems and advanced management
accounting techniques to provide managers with relevant information to cope in
today's environment (Bums & Vaivio, 2001). In this context, Bums and Scapens
(2000, p.3) state that:
The environment in which management accounting is practised indeed
appears to have changed, with advances in information technology, more
competitive markets, different organizational structures, and new management
practices (see for example Ezzamel et al., 1993, 1996). Although some might
claim that the fundamental nature of management accounting systems and
practices has not changed (e.g. Drury et al., 1993), there is evidence that the use
of accounting within the management process has changed (Bromwich &
Bhimani, 1989, 1994). Managers now appear to be using their accounting
systems and routine financial reports more flexible, and in conjunction with a
range of other performance measures, both financial and nonfinancial (Miller &
O'Leary, 1993).
2- The need for this study

The motivation for this study comes from the fact that there is a dearth of
research in the area of management and cost accounting techniques practice in
developing countries. In this regard, previous research has pointed out that the
application of management accounting in less developed countries remains
inadequate and studies on this area are not many in the literature (Lin & Yu,
2002; Sleihat et al., 2012). Several scholars agree that studies in management
accounting have been mainly conducted in the western world (Abdel-Kader &
Luther, 2006, 2008; Uyar, 2010; Van Triest & Elshahat, 2007).
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Based on the dearth of the application of management accounting research in

the developing world, this paper attempts to fill this gap by examining cost and
management accounting techniques practices in a developing country. The KSA
is the research context. This study will provide empirical evidence on the
existence and use of cost and management accounting techniques in the context
of emerging industry market in KSA.
3- Aims of the study

This study aims to:
 Provide a view of the current role of cost and management accounting

techniques practices in KSA environment;
 Identify the extent of usage of management accounting techniques practices
in KSA environment;
 Discover the diffusion of management accounting techniques practices in
KSA environment;
 Determine the level of advance in cost and management accounting
techniques practices in KSA environment;
 Investigate the relationship between the contextual factors and the level of
use of cost and management accounting techniques practices in KAS
environment.
4- Previous studies
Management accounting research can generally be categorised into four
streams which are discussed in detail below.
4.1 The first stream

The first aspect comes from the International Federations of Accountants
(IFAC). In 1998, IFAC (Financial & Committee, 1998) determined four stages
of management accounting development.
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 Stage1: Before 1950, this stage was called Cost determination and financial
control. The main focus of this stage was on determining costs and financial
control processes by using financial statements data.
 Stage 2: This stage (Between 1950 & 1965), is called Information for
management planning and control. The central focus of this stage was the
use of traditional management accounting techniques that support decision
analysis and responsibility accounting.
 Stage 3: This stage (from 1965 to 1985) is called Reduction of waste of
resources in business processes. The main focus of the stage was on the
reduction of waste of resources used in the business process by eliminating
"non- value-added activities".
 Stage 4: this stage (from 1985 to 2000) is called Creation of value through
effective use of resources. Because of significant business uncertainty and
technological innovation, companies started to implement management
accounting tools that assess economic value. The advanced management
accounting such as Just in Time (JIT), Balanced Scorecard (BSC) and
strategic management accounting were used extensively at that time. (See
Sunarni, 2014).
4.2 The second stream

With regards to the second stream, which follows closely to the first as
described above, Waweru (2010) mentions that the academic literature traces the
origin of management accounting from two different perspectives. One
perspective takes the economic approach and is supported by authors such as
Chandler (1977), Kaplan (1984), and Johnson and Kaplan (1987). The other
approach is supported by authors such as Miller and O’Leary (1987), Hoskin and
Macve (1988) and Ezzamel et al. (1990) and is referred to as the non-economic
approach (Luft, 1997).
Researchers in the area of the economic approach argue that management
accounting practices originated from the private sector to support business
8
operations. In this regard, Johnson and Kaplan (1987) state that the origins of
modern management accounting can be traced to the emergence of managed,
hierarchical enterprises in the early nineteenth century (see Drury 2013). During
this period, the need to gain more efficiency in production was realized. Factory
owners started hiring workers on a long-term basis in a centralized workplace
and hence, the development of hierarchical organizations. Factories were
frequently located in a considerable distance from the head office of the owners.
Hence, information systems were required to increase and judge the efficiency of
the managers and workers at the factory. Before this time (the industrial
revolution period) workers were hired on a short-term basis and paid only for
work done, while factories were owner-managed. The role of accounting was,
thus, limited to record-keeping (Waweru, 2010).
Researchers of the non-economic approach argue that in the Nineteenth
Century and early Twentieth Century, control through measuring individual
performance and analysing it by comparison with norms or standards was
developed in governmental institutions such as the military (Hoskin & Macve,
1988). Offices that collected national health statistics (Hacking, 1990) also
introduced these measures before they were common in firms. These scholars
argue that management accounting practices were developed for disciplinary and
academic evaluation purposes and were not meant to support business as argued
by the proponents of the economic approach (see Waweru, 2010).
4.3 The third stream

The third stream classifies research on management accounting into three
types. The first type investigates the level of use of management accounting
techniques in practices in different countries: United Kingdom (Drury et al.,
1993), Singapore (Ghosh and Chan, 1997), Australia (Dean et. al., 1991), Finland
(Hussain, Gunasekaran & Laitinen, 1998), Nigeria (Adelegan, 2000), India and
different Asian countries (Sulaiman et. al., 2004, Mahfar and Omar ,2004). The
research in this type reports on the management accounting techniques that are
used by different organizations in different countries.
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The second type focuses on comparing management accounting techniques in

practices among countries, with a particular focus on Japan. Hayes and
Abernathy (2007) note that the US companies' performance is lower than
Japanese counterparts. Based on this finding, several researchers made
comparisons of management accounting practices across countries. For Example,
Shields et al. (1991) compared similarities and differences in management
accounting practices between the US and Japan. Furthermore, Wijewardena and
De Zoysa (1999) compared the use of management accounting techniques
between Australia and Japan. Their study indicated that Australian companies
widely adopted management accounting techniques relating to cost control
during the manufacturing process. However, management accounting
techniques relating to cost control at the design of the product stage was widely
adopted by Japanese companies. Also, Luther and Longden (2001) compare the
use of management accounting practice between South Africa and the United
Kingdom. The results indicated that there were differences in the use of
management accounting techniques and the factors influencing the use of
management accounting.
The final type includes studies that aimed to examine the relationship
between contextual variable and observed management accounting techniques in
practices. For instance, Haldma and Lääts (2002) examined the effect of the
change on ownership (public vs private), technology, and market structure on
the use of management accounting techniques. The results indicated that such
relationship exists whoever there was no determination on a specific set of
management accounting techniques. Furthermore, Wu et al. (2007) examined
the relationship between management accounting practice and institutional
variables in terms of the type of ownership (i.e. stated-owned or joint ventures).
The results indicated that the type of ownership influenced perceived current
and future benefits of management accounting practices (See Sleihat et al., 2012;
El-Shishini, 2017).
01
4.4 The fourth stream

It could be said that the fourth new stream of research in management
accounting emerged in the last few decades. Examples of frameworks within this
stream include the contingency theory, institutional theory, and actor-network
theory. Some recent studies have adopted the contingency theory approach. It is
a theoretical framework derived from organisational studies and is based on the
claim that the use of management accounting practices depends on certain
factors. Examples of such factors include environmental uncertainty,
competition, technology, size, and organizational structure. The basic idea
behind the contingency theory is that no universally appropriate accounting
system fits all organisations in all circumstances (Otley, 1980; Otley 2016;
Emmanuel et al., 1990; Islam & Hu, 2012; Oates, 2015). As captured in
contingency theory, organisational structures and systems are a function of
environmental and firm-specific factors (Anderson & Lanen, 1999; Chenhall,
2003; Gerdin, 2005; Gerdin & Greve, 2004; Haldma & Laats, 2002, Cadez &
Guilding, 2008; Islam & Hu, 2012).
Another framework in management accounting research is the institutional
theory. This theory has three frames: new institutional economics (NIE), old
institutional economics (OIE); and new institutional sociology (NIS) (Scapens,
2006). The new institutional economics (NIE) encompasses a broad range of
economic approaches which have developed out of neoclassical economics, NIE
uses economic reasoning to explain diversity in the forms of institutional
arrangements. It focusses on the structures that govern economic transactions.
The old institutional economics (OIE) work explores how habits, rules and
routines structure economic activity, and importantly how they evolve through
time. By adopting an OIE perspective, management accounting can be
conceptualised as the rules and routines which shape organisational activity. The
OIE is concerned with institutions that impact upon thought structures of
individual human agents. On the other hand, new institutional sociology (NIS)
work tends to emphasise the structural nature of institutions. In other words, it
deals with how institutional forces mould organisations. These are forces which
00
are external to the organization. The NIS deals with the institutions that shape
organisational structures in the organisational environment (Scapens, 2006).
The Actor-Network Theory (ANT) is a research approach which focuses on

how human and non-human elements (“actants”) form more or less stable
alliances (“networks”) in order to create knowledge (“facts”) or innovations
(“machines”) (Lukka, 2012). The ANT originates from the sciences and takes a
new approach to investigate relationships between actants. Thus, it is not
necessarily a theory but rather an ontological approach that has been extensively
applied in accounting (Justesen & Mouritsen, 2011). It does not engage in the
how and why questions but instead seeks to analyse the ties within a network,
where a network can be comprised of humans and non-humans (Ahrens &
Chapman, 2006; Justesen & Mouritsen, 2011; Whittle & Mueller, 2010). The
network with the most substantial ties will be the most successful, thus deserves
attention (Whittle & Mueller, 2010). Scientific truth arises out of the robust
network around a scientific theory, by investigating the actors and researching
the ways they relate to each other (Al-Htaybat and Al-Htaybat, 2013).
In general, it could be said that cost and management accounting systems are
used as a tool to facilitate successful organisational reforms and help organisations
to survive through such rapid changes (Hopwood, 2009). Demand for
management accounting information leads to inevitable changes to management
accounting (Quinn, 2014; Pavlatos & Kostakis, 2015). However, the pace of
such changes may be slower than changes observed in, say manufacturing
operations, and it may vary across different countries (Chenhall & Langfield-
Smith, 1998; Hyvönen, 2005; Joshi et al., 2011). Existing literature (Innes &
Mitchell, 1992; Zairi, 1992; Atkinson et al., 1995) documents an increased
interest in new accounting methods and techniques, with many success stories.
On the other hand, the evolutionary history of cost and management accounting
shows that its practices evolve in a clear association with the environmental
changes and the society’s needs (Clarke, 2004). Some authors relate the use of
accounting techniques with the strategic priorities of the firm (Chenhall &
02
Langfield-Smith, 1998). Nonetheless, the level of management accountancy

practice and its effects on KSA companies remains unknown.
Therefore, it can be said that this research will add some value to the knowledge
about cost and management accounting practice in KSA environment.
5- Variables
 Importance of cost information
 Intensity of the competitive environment
 Firm size
 The quality of information technology
 Extent of the use of Total Quality Management approaches
 Extent of use of lean production techniques (including JIT techniques)
 Perceived environmental uncertainty
 Qualification of Cost and Management Accounting Staff
5.1 Importance of cost information

Even if sophisticated cost systems could substantially reduce product cost
distortions, it is not likely to be helpful unless a firm can actually utilise better
cost information in its decision-making process (Cagwin & Bouwman, 2002).
Firms mainly relying on cost information for inventory valuation/profit
measurement rather than decision-making purposes may rely on less accurate
cost information derived from simplistic costing systems (Kaplan & Cooper,
1998). According to Anderson (1995) and Estrin et al. (1994), the differing needs
by organizations for accurate cost data for strategic decisions and cost reduction
may affect Activity-based costing (ABC) adoption. A review of some studies
relating to the importance of cost information shows that there is a difference in
the needs of firms for accurate cost data for decisions and cost reduction may
affect ABC adoption (Anderson, 1995; Krumweide, 1998; Baird et al., 2004;
Pavlatos & Paggios, 2009); Ismail & Mahmoud, 2012). Factors affecting the
decision usefulness of cost information include the firm's use of cost data in
03
pricing decisions, cost reduction efforts and the need for individual cost studies.
The following hypothesis is, therefore tested:
Hypothesis 1(H1): There is a positive relationship between the justification of

cost information and the use of cost and management accounting practices.
5.2Intensity of the competitive environment

The competition is a crucial situational factor in the total number of factors
that comprise the firm's environment. Studies by Libby and Waterhouse (1996)
and Simons (1990) suggest that companies facing intensely competitive market
environments tend to employ relatively more sophisticated management
accounting systems. These views are also consistent with Khandwalla’s (1972)
finding of a positive relationship between sophisticated management controls and
competition intensity. Bruns and Kaplan (1987) identify competition as the most
important external factor for stimulating managers to consider redesigning their
costing systems. Cooper (1988b) has also argued that organizations facing fierce
competition should implement ABC. Prior contingency studies (e.g. Hemmer,
1996; Hoque & Hopper, 1997; Khandwalla, 1972, 1974; Krishnan, 2005;
Krishnan et al., 2002; Libby & Waterhouse, 1996; Merchant, 1984) suggest that
today's firms need management accounting and control systems that can provide
timely, accurate and relevant information on a wide range of issues, including
product costs, productivity, quality, customer service, customer satisfaction, and
profitability. Kaplan (1995, p. 6) suggests that “The new competitive environment
demands much more accurate cost and performance information on the firm's
activities, processes, products, services, and customers.” Kaplan (1995, p. 6)
further argues that in competitive environments, managers must also have timely
and accurate information to guide their learning and improvement activities
information that will help make processes more efficient and more customer-
focused.
Some argue that more sophisticated management accounting systems are
likely to be deployed by firms operating in intensely competitive market
environments (See, for instance, Khandwalla, 1972; Libby & Waterhouse, 1996;
04
Simons, 2000; Al-Omiri & Drury, 2007). Competition is identified as the most
important external factor for stimulating managers to consider redesigning their
costing systems (Bruns & Kaplan, 1987; Cooper, 1988; Al-Omiri & Drury, 2007).
Companies facing intensive competition also have a greater impetus to find
ways to differentiate their products and services from those provided by
competitors (Guilding & McManus, 2002). This requirement frequently results
in a higher number of product and service lines. Also, it results in differentiation
sought through increased customization of products and services in order to meet
specific customer desires. In these circumstances, companies require sophisticated
costing systems to measure the costs of increased variety and customization
accurately. They will then be able to ascertain whether the strategy adopted
results in the generated revenues exceeding the higher costs associated with the
increase in variety and customization. Companies facing relatively intensive
market conditions are also likely to have products and services with low-profit
margins due to pressure to match or under-cut prices charged by competing
firms. Thus, there is a greater need for accurate cost systems since there is a
danger that inaccurate systems may significantly over cost or under cost
products/services to such an extent that incorrect decisions will be made. For
example, under costing may lead to a company incorrectly continuing with low
margin products which could lead to loses. Conversely, over costing may result
in the mistaken discontinuation of reported loss-making products or services,
which are really generating low-profit margins. Thus, organizations facing
intense competition have a greater need for accurate cost information (Al-omiri
& Drury, 2007). Based on the above discussion, the following hypothesis is
tested:
Hypothesis 2(H2): There is a positive association between the intensity of
competition and the use of cost and management accounting practices.
5.3 Size of the firm

Several researchers have argued that organizational size facilitates innovation
(Aiken & Hage, 1971; Kimberly & Evanisko, 1981; Ettlie et al., 1984). Large
05
organizations tend to have more complex and diverse facilities that aid the
adoption of a large number of innovations (Nord & Tucker, 1987). Previous
empirical studies have noted a positive relationship between a company’s size and
the adoption of innovations (Blau & McKinley, 1979; Dewar & Dutton, 1986;
Damanpour, 1992). In their review, Moores and Chenhall (1994) find that there
is considerable evidence that size is an essential factor related to the adoption of
more complex administration systems. Some studies have noted a positive
relationship between company size and the adoption of ABC systems (Innes &
Mitchell, 1995; Bjornenak, 1997; Malmi, 1999).
Some authors argue that larger firms have higher advantages over smaller
firms, especially in terms of the ability to afford more resources to facilitate the
adoption of a new technique (Baird, 2007; Bjo¨rnenak, 1997; Brown et al.,
2004; Innes & Mitchell, 1995). Several studies have supported a link between
size and the adoption of management accounting techniques such as ABC
(Damanpour,1992; Drury & Tayles, 1994; Moores & Chenhall, 1994; Innes &
Mitchell, 1995; Libby & Waterhouse, 1996; Bj¨ornenak, 1997; Gosselin, 1997;
Langfield-Smith et al., 1998 ;Booth & Giacobbe, 1998; Krumwiede, 1998;
Baird et al.,2004; Brown et al.,2004; Pierce, 2004; Al-Omiri & Drury, 2007a;
Al-Omiri & Drury, 2007b; Baird, 2007; Abdel-Kader, 2008). Most of these
studies suggest that larger firms are more likely to adopt ABC than smaller firms.
For example, Al-Omiri and Drury (2007b) find a significant association between
business size and the adoption of ABC in UK organizations. Innes et al. (2000)
find that the adoption of ABC is significantly higher (26.3%) in larger
organizations than in smaller organizations (15.8%). Pierce's (2004) findings also
confirm that the adoption of ABC is significantly higher among larger
organizations than smaller firms. Similarly, Brown et al. (2004) find a significant
positive association between organizational size and the adoption of ABC. Also,
Abdel-Kader (2008) found a significant association between business size and
sophisticated cost systems. Abdel-Kader and Luther (2008, p.7) cite some studies
which have concluded that large organisations tend to adopt more advanced
MAPs when compared to smaller organisations. For instance, Otley (1995) is
06
cited as providing proof of how size affects control methods in studies of the role
played by MASs after a merger of a takeover. For Haldma and Laats (2002), the
advanced level of budgeting systems and cost accounting tends to escalate as the
size of a firm gets bigger. However, a few studies have different results regarding
the impact of business size on the adoption of a cost system such as ABC. Such
studies claim that there is no statistically significant association between size and
the adoption of ABC (Libby & Waterhouse, 1996); Gosselin’s, 1997; Cohen et
al., 2005; Baird, 2007; John, 2014).
It can be concluded that larger organizations have more resources to develop
more innovative systems and hence, there is a higher likelihood that they
implement more sophisticated costing systems. Therefore, the following
hypothesis is tested.
Hypothesis 3 (H3): There is a positive relationship between the size of the
organization and the use of cost and management accounting practices.
5.4 Extent of the use of Total Quality Management approaches

Top management is motivated by fulfilling the needs of customers, which are
the main objective of total quality management. Total quality management
brings improvement in quality and innovation in an organization. Organizations
which are using TQM get more advantages in terms of loyal customers, best
quality products, and introducing innovations in products (Zehir et al., 2012).
However, this results from significant efforts to investigate the cost of modern
management practices and the overall management of quality (Shahzadi et al.,
2018).
Available evidence suggests that firms that are more innovative in technical
areas also tend to be more innovative in administrative areas, and vice versa
(Damanpour & Evan, 1984). Thus, firms that have implemented total quality
management approaches are likely to be more technologically innovative than
other firms and therefore tend to adopt more administrative innovations in cost
and management accounting like ABC. Cagwin and Bouwman (2002) note that
because ABC often provides more and better information about processes, it may
07
be more beneficial if other initiatives are employed concurrently. This linkage

provides direction to the ABC implementation and a ready application for the
ABC information once it becomes available (Swenson, 1998). Other studies
have also reported that ABC fits in well with the cost of the quality framework.
Krumwiede (1998) has also suggested that firms often link ABC to their formal
quality management practices. Therefore, the following hypothesis is tested.
Hypothesis 4 (H4): There is a positive relationship between the application of
total quality management and the use of cost and management accounting
practices.
5.5 Extent of use of lean production techniques (including JIT

techniques)
Firms adopting Just in time (JIT) production techniques establish production
cells that are dedicated to the manufacturing of a single product or family of
similar products. Hence, many of the support activities can be directly traced to
the dedicated cells. Therefore, the benefits of implementing sophisticated costing
systems may be lower in JIT organizations. Also, given that JIT production is
oriented towards process and time, it is likely to be supported by traditional
costing methods that are based on how long the product is in the process. The
pursuit of lean production techniques and the JIT philosophy that focuses on
eliminating waste or non-value-added activities also motivates firms to derive a
better understanding of what is creating the firm's product and support costs and
what the cost drivers are. The focus on activity analysis makes the
implementation of sophisticated costing techniques based on activity costing and
the identification of appropriate cost drivers easier to implement (Al-Omiri &
Drury, 2007). The implementation of JIT reduces many entries which are very
helpful in accounting system (Dalci, 2006). Based on the conflicting relationship
on the impact of lean production techniques, the following null hypothesis is
formulated.
Hypothesis 5(H5):There is no relationship between the implementation of lean
production techniques and the use of cost and management accounting practices.
08
5.6 Quality and choice of information technology needed in the

competitive market
The chosen level of cost system sophistication should be made on costs versus
benefits criteria (Al-Omiri & Drury, 2007). Sophisticated costing systems become
more beneficial as the cost of data collection and processing is reduced (Cooper,
1988b). The level of information technology can thus play an essential role in
influencing cost system design. For example, the measurement cost associated
with using additional cost drivers depends on whether the data required by that
driver is already available or has to be specifically determined. Organizations with
high-quality information systems can provide detailed data that is easy to access
relating to the cost driver information that is needed by more sophisticated
costing systems. In general, companies with shared databases that track the
detailed operational data needed for resource and activity analysis have an easier
time implementing and maintaining ABC (Reeve, 1995; Anderson, 1995). The
following non-directional hypothesis is, therefore formulated.
Hypothesis 6 (H6): There is a positive relationship between the quality of an

organization’s information technology and the use of cost and management
accounting practices.
5.7 Perceived environmental uncertainty
External environments are all elements that exist outside the boundary of the
organization and have a potential effect on the whole or parts of the organization
(Daft, 2010:140; Robbins & Judge, 2012:499). The external environment is an
influential contextual variable that is the foundation of contingency-based
research in management accounting (Chenhall, 2003:137). The external
environment creates uncertainty for the organization (Daft, 2010:59).
Environmental uncertainty is an aspect that has been studied extensively in
research in the field of management accounting (Chenhall, 2003:137).
Uncertainty can be defined as an individual's perceived inability to predict
something accurately (Milliken, 1987:136). The similar definition was adopted
by Hoque (2004: 90) and CIMA (2005:97) who focused on the concept of
09
perception. In many studies, environmental uncertainty is expressed in perceived

environmental uncertainty (PEU). The use of perception rather than the
objective reality of the external environment or the property itself has invited a
lot of debate (Miliken, 1987:134; Sharfman & Dean, 1991:682). However,
Miliken (1987:134) argues that the problem is not in the idea but on the
execution of the idea.
PEU is one of the first contingent factors examined for their effect on the
design of management accounting practices. Gull and Chia (1994) showed that
when perceived environmental uncertainty is low, management can make
relatively accurate predictions in the market. Abdelkader et al. (2008) found that
firms that perceive a higher degree of environmental uncertainty adopt more
sophisticated management accounting practices than firms that perceive low
environmental uncertainty. The level of environmental uncertainty affects the
level of improvement in management accounting practices (Amara & Benelfe,
2007). Researchers in management accounting and control systems argue that
managers that realize the importance of environmental uncertainty give greater
importance to management accounting systems (Al Malawi, 2015; Hoque,
2004).The contingency-based literature concludes that the external environment
is a key influential factor in the choice of the design of control and performance
measures (Chenhall, 2003; Fakhri, 2012). King et al. (2010, p.45) argue that
“PEU is seen to be an important contextual factor in the design of MCS because
increased PEU makes managerial planning and control more difficult”.
The findings from several studies (Gordon & Miller, 1976; Gul, 1991;
Govindarajan, 1984; Schulz et al., 2010) report that high environmental
uncertainty results in the use of broad scope information (i.e. financial and non-
financial).Chenhall and Morris (1986) find a positive association between
perceived environmental uncertainty and the demand for broad-based
information systems incorporating non-financial indicators. Gosselin (1997) finds
that environmental uncertainty influences the decision to implement activity-
based costing. Ivey and Menor (2004) examined contingency factors affecting the
adoption of the BSC using a combination of survey and archival data. From
21
these studies, they find that the adoption of BSC is significantly related to firm
strategy, firm size, and environmental uncertainty. Banker et al. (2001) show,
based on their study that firms employing a Balanced Scorecard to measure their
performance face a reduced level of PEU. However, Verbeeten (2004), Zuriekat
(2005), Zhu et al. (2009) and Jusoh (2010) have concluded that PEU has no
significant influence on the use of MPMs.
Hypothesis7 (H7): There is a positive association between the perceived
environmental uncertainty and the use of cost and management accounting
practices.
5.8 Qualification of Cost and Management Accounting Staff

The level of qualification among accounting staff is defined as the knowledge
obtained by an accountant to perform some activity in their organization (Nair &
Nian, 2017). According to Abdel-Kader and Luther (2008), the level of
qualification is essential and crucial for accountants. Qualified accounting staff are
also crucial to an organization as the knowledge of accounting staff would affect
the success, growth, and sustainability of the organization (Brown, Booth, &
Giacobbe, 2004). Abdel-Kader and Luther (2008) examined the effect of the
level of qualification of accounting staff on MAPs in the UK. The results
indicated that the level of qualification of accounting staff would differ between
the sophistication of management accounting and organization. Haldma and
Laats's (2002) study on accounting staff on MAPs in Estonian manufacturing
companies found that there is a significant relationship between the level of
qualification of accounting staff and MAPs. Also, the authors found that there is a
lot of accounting staff that did not have proper knowledge on how to use the
accounting information. Ahmad (2012) examined the relationship between the
level of qualification of accounting staff and MAPs in Malaysian SMEs. The
author found that the level of qualification of accounting staff had a significant
impact on MAPs in Malaysian SMEs. Furthermore, the study found that the
education level of accounting staff significantly influenced the preparing and
usage of accounting information.
20
Larger organizations typically have accounting and finance departments

(Ismail & King, 2007). It could be said that large companies hire qualified
accounting staffs to use MAPs for internal reporting and to assist top
management in the decision-making process (Ismail & King, 2007). In terms of
the SMEs context, MAPs applied by qualified accounting staffs may have a
significant impact on the organization’s productivity and growth (Collis & Jarvis,
2002). Consequently, the qualification of accounting staff is one of the factors
that might affect the adoption of MAPs in an organization. On the other hand,
the shortage of qualified accountants may serve as a crucial aspect, as far as the
application of contemporary management accounting techniques is concerned.
Hypothesis 8(H8): There is a positive relationship between the Qualification of
Cost and Management Accounting Staff and the use of cost and management
accounting practices.
6. Research design and data collection

A postal and e-mail questionnaire survey was used to gather the data. The
targeted population was KSA manufacturing firms. A survey was designed to
fulfil the aims of this study. The full questionnaire was developed based on those
used in prior research. Before mailing the final version of the questionnaire, a
pilot study was undertaken using a group of university academics, managers, and
management accountants. Before the survey instrument was mailed to the
organizations under investigation, its content validity was addressed by asking a
group of experienced management accounting lecturers and postgraduate
students to review the instrument for clarity and meaning and to refine the
design and refocus the content. Based on the responses to the pilot survey,
appropriate modifications were made to the final version of the questionnaire.
These are mainly related to the clarity of the questions and the layout of the
questionnaire. The final version of the questionnaire excludes the front covering
page. The first page included guidance notes to facilitate answering some of the
questions. The personalized letter requested the addressee to participate in the
survey by answering the questionnaire themselves or for another knowledgeable
22
person to answer the questionnaire. Respondents were assured that their

anonymity would be preserved. The procedure was undertaken to increase the
response rate and the accuracy of the survey responses. A follow-up package was
sent seven weeks later. Also, communication by email was used for most
companies and was used to follow up process as well.
In KSA, a total of 49 questionnaires were returned from the 62 sent to
companies in KSA. Therefore, the response rate = 49/62x100 = 79%.
7. Demographic data of respondents
Table 1: The level of education for our respondents

Education Frequency %
PhD 4 8.2
Masters 8 16.3
Bachelor 29 59.2
Diploma 6 12.2
Other 2 4.1
Total 49 100.0
As can be noted from the table above, four respondents hold PhD 8.2 %; eight
respondents have master 16.3 %; 29 respondents have a bachelor degree 59.2 %;
six respondents have diploma 12.2% and two respondents indicated by other
4.1%.
23
Table 2: The respondents' Job

Respondent’s job Frequency %
Financial Manager 17 34.7
Director of Production Management 10 20.4
Director of Costing Management 8 16.3
Management Accountant 8 16.3
other 6 12.2
Total 49 100.0
As can be noted from the table above, 17 respondents work as financial

manager (34.7%); ten respondents work as director of production management
(20.4%); eight respondents work as director of costing management (16.3%);
eight respondents work as management accountant (16.3%) and six respondents
titled by other (12.2%)
We concluded that our respondents have a high level of education, with good
jobs. Therefore, they can adequately answer our questions.
Table 3: The capital of our firms
Capital Frequency %
Less than 50 m 16 32.7
50m -100 m 8 16.3
100-200 m 11 22.4
200-300m 3 6.1
300-500m 6 12.2
500-750m 2 4.1
Over 750m 3 6.1
Total 49 100
24
From Table 3, 16 firms lee than 50 million (32.7%), 8 companies between 50

to 100 million (16.3%), 100 to 200 million (11 companies) (22.4%), three
companies from 200 to 300 million (6.1%), six companies from 300 to 500
million (12.2%), two companies between 500 to 750 million (4.1%) and three
companies more than 750 million (6.1%).
8. Measurement of the variables

Dependent variable:
The dependent variables contain fifteen from the cost and management
accounting tools (Absorption Costing; Variable Costing; Activity-Based Costing;
Activity-Based Budgeting; Activity Analysis; Life Cycle Costing; Target
Costing; Benchmarking; Balanced Scorecard; Economic value-added; Cost
control system; Value Chain Analysis; Transfer Pricing; Kaizen Costing; and
Break-even Analysis). The questionnaire ascertained whether the respondents
used Cost and management accounting practice in their firms based on a scale
from 1 to 7(1 denotes to never used, and seven denotes to extensively used). The
results of the survey are presented in Table 4.
Table 4: Cost and management accounting techniques practices

Cost and
Management Std. Cronbach’s
N 1&2% 6&7% Mean
Accounting Deviation alpha
Techniques
Absorption
49 6.1 73.5 5.76 1.665 90
Costing
Variable Costing 49 4.1 75.5 5.98 1.493
Activity-Based
49 6.1 63.3 5.45 1.672
Costing
Activity-Based
49 6.1 65.3 5.41 1.914
Budgeting
Activity Analysis 48 8.3 77.1 5.75 1.707
25
Cost and
Management Std. Cronbach’s
N 1&2% 6&7% Mean
Accounting Deviation alpha
Techniques
Life Cycle Costing 49 8.2 85.7 6.31 1.342
Target Costing 49 8.2 75.5 5.86 1.399
Benchmarking 49 4.1 55.1 5.53 1.487
Balanced
49 4.1 61.1 5.59 1.499
Scorecard
Economic value
49 4 71 5.78 1.418
added
Management
49 4 71.5 5.90 1.342
control system
Value Chain
49 10.2 51 4.96 1.620
Analysis
Transfer Pricing 49 16.3 26.6 4.35 1.627
Kaizen Costing 48 14.6 50.1 4.83 1.742
Break-even
49 12.2 36.8 4.88 1.615
Analysis
The dependent variable was the cost and management accounting tools. The
Likert scale was used. Objective data were used for size. The size was measured
using the capital of the company (SR million for KSA) for the respondents'
business unit. The other variables of interest required the use of perceptive
measures, and thus multi-question Likert-type seven-point scales were used to
derive a composite score for each variable. Where possible, the measures were
based on prior literature. Details specifying the number of questions used and
Cronbach's Alpha for the independent variables are shown in Table 5.
 Importance of cost information
 Intensity of the competitive environment
 Size of the firm
26
 The quality of information technology

 Extent of the use of Total Quality Management approaches
 Extent of use of lean production techniques (including JIT techniques)
 Perceived environmental uncertainty
 Qualification of Cost and Management Accounting Staff
Table 5: the number of questions for the independent variables and

Cronbach’s Alpha
Number of Cronbach’s
Variable
questions alpha
1-Importance of cost information 5 0.64
2-Intensity of the competitive environment 9 0.66
Objective
3-Size 1
measure
4-The quality of information technology 4 0.77
5-Extent of the use of Total Quality
4 0.75
Management approaches
6-Extent of use of lean production
5 0.82
techniques (including JIT techniques)
7-Perceived environmental uncertainty 8 0.86
8-Qualification of Cost and Management
5 0.855
Accounting Staff
It was necessary to discover whether there is a difference between low and

high cost and management accounting practices usage regarding to the
importance of cost information; intensity of the competitive environment; size of
the firm; the quality of information technology; extent of the use of Total
Quality Management approaches; extent of use of lean production techniques
(including JIT techniques); perceived environmental uncertainty and
27
qualification of cost and management accounting staff . The firms were divided
into two groups, low and high cost; and management accounting practices usage.
The first group contained 22 manufacturing and the second group contained 27
manufacturing firms.
A non-parametric test (Mann-Whitney) was used for all variables expect size
where T-Test was used. The p-values and summary statistics for each of the
items examined for two groups are shown in Table 6. This table indicates that
significant differences were observed between low and high cost and
management accounting practices usage in respect of the Importance of cost
information ; Intensity of the competitive environment; Size of the firm; The
quality of information technology; Extent of the use of Total Quality
Management approaches; Extent of use of lean production techniques (including
JIT techniques); Perceived environmental uncertainty and Qualification of
Cost and Management Accounting Staff.
Table 6: low and high usage of cost and management

accounting practices
Std. Mann-Whitney
Variable Mean
Deviation Test
1-Importance of cost information 4.64 0.92 0.001
2-Intensity of the competitive
4.47 0.90 0.002
environment
3-Size * 10.53 0.72 0.000
4-The quality of information technology 4.28 1.33 0.000
5-Extent of the use of Total Quality
4.88 0.77 0.000
Management approaches
6-Extent of use of lean production
4.80 0.97 0.000
techniques (including JIT techniques)
7-Perceived environmental uncertainty 5.49 0.84 0.000
8-Qualification of Cost and Management
5.78 0.95 0.000
Accounting Staff
 T. tset was used for Size variable
28
9. Conclusion, limitation and future research

Little attention has been given by previous research into examining the factors
that affect cost and management accounting practices and the level of the usage
of these techniques. Where these issues have been examined, the studies have
relied on single response questions rather than Likert scale questions used in this
study. Also, the paper has examined the degree of usage of cost and management
accounting practices and the determinants of that level. Also, this study was
inspired by the reality that there are a few research studies in the area of
management and cost accounting techniques practice in developing countries. In
this regard, previous research has pointed out that the application of management
accounting in less developed countries remains inadequate and studies on this
area are few in the literature (Lin & Yu, 2002; Sleihat et al., 2012). Studies in
management accounting have been mainly conducted in the western world
(Abdel-Kader & Luther, 2006, 2008; Uyar, 2010; Van Triest & Elshahat, 2007).
Therefore, this paper attempts to fill this gap by examining management and cost
accounting techniques practices in a developing country, using KSA as the
research context. This study will provide empirical evidence on the existence
and use of management and cost accounting techniques in the context of an
emerging market: the KSA.
Table 7: the results of the examination of the hypothesis
Hypothesis The relation’s
The hypothesis
number level (result)
There is a positive relationship between the
1 justification of cost information and the use of significant
cost and management accounting practices
There is a positive association between the
2 intensity of competition and the use of cost significant
and management accounting practices.
3 significant
size of the organization and the use of cost and
29
Hypothesis The relation’s

The hypothesis
number level (result)
management accounting practices
application of total quality management and
4 significant
the use of cost and management accounting
practices
There is no relationship between the
implementation of lean production techniques
5 significant
and the use of cost and management
accounting practices
quality of an organization’s information
6 significant
technology and the use of cost and
There is a positive association between the
perceived environmental uncertainty and
7 significant
the use of cost and management accounting
practices
Qualification of Cost and Management
8 significant
Accounting Staff and the use of cost and
Despite not using advance analysis, the tests that have been used show that
there is a significant relationship between cost and management accounting
practices and the factor of importance of cost information; intensity of the
competitive environment; size of the firm; the quality of information
technology; extent of the use of total quality management approaches; extent of
use of lean production techniques (including JIT techniques); perceived
environmental uncertainty; and qualification of cost and management
31
accounting staff. We concluded that all our hypotheses were confirmed by the
results above. Due to time constraints, we have not used an advanced test for the
current study. Therefore, future study may use an advanced statistic, like
regression, to confirm our results.
Just like any other study, this study has its limitations. We used five items to
measure the influencing of the qualification of cost and management accounting
staff (our accounting staff has ability for implementation of new techniques in
accounting; our accounting staff has ability in finance knowledge; our
accounting staff has ability of innovation orientation in management accounting;
our accounting staff has ability in communication skills; our accounting staff has
proper knowledge how to use the accounting information). Some of the
accountants answered (16 management accountants) these questions in our study.
Therefore, this is a variable that may have a bias. However, some 33 respondents
who answered these questions are not accountants. Also, the 15 cost and
management accounting techniques have been grouped on one variable.
However, based on the importance of every tool, future research may focus on
one tool instead of grouping tools. This will be followed by undertaking a more
in-depth case study to examine the effect of the independent variables and how
they impact on the level of usage. Besides, future research may investigate the
effect of these techniques of a firm’s performance. This study has focused mainly
on the manufacturing sector; future research may include other sectors like the
services.
Despite the above limitations, this study has provided additional insights into
areas relating to factors impacting on cost and management accounting practices
usage. It has also extended the scope of future research. Considerable efforts
have been taken to minimise the limitations and remedy the deficiencies of
previous studies. It is hoped that this paper will motivate researchers to
undertake further research in the areas suggested.
30
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Alexandria Journal

of Accounting Research Third Issue, September, 2020, Vol. 4

Dr. Faisal Alroqy1 The Factors Influencing Cost and

Keywords: importance of cost information, the quality of information technology,

‫مدد ر والأس ديدلمددصري لمدد ي والا المدد ت المدرد سطييأللمت مغييأل‬

The same authors add:

Management Accountants commissioned an investigation to review the current

2- The need for this study

Based on the dearth of the application of management accounting research in

3- Aims of the study

 Provide a view of the current role of cost and management accounting

4.1 The first stream

4.2 The second stream

4.3 The third stream

The second type focuses on comparing management accounting techniques in

4.4 The fourth stream

The Actor-Network Theory (ANT) is a research approach which focuses on

Langfield-Smith, 1998). Nonetheless, the level of management accountancy

 Qualification of Cost and Management Accounting Staff

5.1 Importance of cost information

Hypothesis 1(H1): There is a positive relationship between the justification of

5.2Intensity of the competitive environment

5.3 Size of the firm

5.4 Extent of the use of Total Quality Management approaches

be more beneficial if other initiatives are employed concurrently. This linkage

5.5 Extent of use of lean production techniques (including JIT

5.6 Quality and choice of information technology needed in the

Hypothesis 6 (H6): There is a positive relationship between the quality of an

perception. In many studies, environmental uncertainty is expressed in perceived

5.8 Qualification of Cost and Management Accounting Staff

Larger organizations typically have accounting and finance departments

6. Research design and data collection

person to answer the questionnaire. Respondents were assured that their

7. Demographic data of respondents

Table 1: The level of education for our respondents

Table 2: The respondents' Job

Financial Manager 17 34.7

Director of Production Management 10 20.4

Director of Costing Management 8 16.3

Management Accountant 8 16.3

As can be noted from the table above, 17 respondents work as financial

From Table 3, 16 firms lee than 50 million (32.7%), 8 companies between 50

8. Measurement of the variables

Table 4: Cost and management accounting techniques practices

 The quality of information technology

Table 5: the number of questions for the independent variables and

It was necessary to discover whether there is a difference between low and

Table 6: low and high usage of cost and management

9. Conclusion, limitation and future research

Hypothesis The relation’s

Ahmad, K (2012). Factors explaining the extent of use of management

Anderson, S. and Lanen, W. (1999). Economic transition, strategy and the

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Bromwich, M. and Bhimani, A. (1994): Management Accounting Pathways to

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