The Usefulness Of Modern Management Accounting Techniques On Management’S Decision Making: Case Of The Nigerian Manufacturing Industry

ABSTRACT Purpose: This thesis examines the adoption and usage of modern management accounting techniques among the listed consumer goods manufacturing firms in Nigeria. Research Questions: This thesis addressed three research questions. (1) What motivates Nigerian consumer goods manufacturing firms to adopt Modern Management Accounting Techniques (MMATs)? (2) What are the factors militating against the adoption of MMATs among Nigerian consumer goods manufacturing firms? (3) How do the MMATs provide accurate and timely information to assist managers of Nigerian consumer goods manufacturing firms in decision-making? Methodology: Qualitative methods were employed to handle empirical data gathering by semi-structured interviews from four consumer goods manufacturing firms in Nigeria. The data for the study were analyzed and thoroughly discussed in light of existing theories, and the findings are presented. Findings: It has been revealed in the study that the most widely used according to the case companies are ABC, JIT, TQM, Benchmarking and Target Costing. The study found that MMATs are very helpful and give more detailed information about the internal and external affairs of the Nigerian consumer goods manufacturing industry. The competition in the Nigerian consumer goods manufacturing industry, owner’s choice, support, and well-experienced staff are the factors that motivated MMATs adoption in the case companies. Competition is very high in the Nigerian consumer goods sector. Hence firms in the industry are adopting MMATs to maintain their position in the industry. On the other hand, it was discovered that according to the case companies, lack of financial resources, government support, high cost of production, access to credit, and low level of technology in Nigeria are factors militating against MMAT adoption among Nigerian consumer goods firms. On the final note, the study found that MMATs aid the decision-making process. The information providedby MMATs helps consumer goods firms under review to make decisions that enable them to compete and increase their market share. Some of the leading consumer goods manufacturing firms believe they are leading because they are adopting modern and acceptable techniques. MMATs result in the efficient use of resources, cost reduction and provide timely and accurate information, which is used in making business and strategic decisions. Significance of the Study: This research contributes to literature by increasing the knowledge regarding the adoption and usage of MMATs among the listed consumer goods manufacturing firms in Nigeria. There is limited study on MMATs adoption in Nigeria. The few available studies in this area did not use consumer goods manufacturing firms as a case study. Hence, this study has contributed significantly to the knowledge on how MMATs are adopted, factors motivating the adoption as well as limiting factors, and uses of MMATs among listed consumer goods manufacturing firms in Nigeria. Limitations: This study was limited to the listed consumer goods firms in Nigeria, using a sample of four firms. The sample might be small and limited to participants in a particular geographic region in Nigeria, and the sector of consumer goods. Hence, the information provided may not be valid for other areas and industries.