ETHIOPIAN CIVIL SERVICE UNIVERSITY

COLLEGE OF FINANCE, MANAGAMENT AND

DEVELOPMENT

DEPARTEMENT OF PUBLIC FINACIAL MANAGMENT

Cost And Management Account 1

INDIVIDUAL ASSIGNMENT ONE:

TITLE: ARTICLE REVIEW COST AND MANAGEMENT ACCOUNT

Submitted to: Dr. Guarav Aggarwal

Prepared by: Ismail Abdihakim Ahmed

ID: 1900853

june/2021
ADDIS ABABA,
ETHIOPIA

Purpose of the article

This article explores the relationship among cost accounting system structure and information
quality properties through and integrated framework of cost system design and use also it
enhance research agenda in relation to management accounting system implementation that is
mostly concentrated on activity-based relation issue.
Also it explore cost and management accounting practices utilized by manufacturing companies
operating in Ankara,Turky. The sample of the study consists of 10 companies, containing both
small and medium-sized enterprises, and large companies. The data collection methodology of
the study is questionnaire survey. The content of the questionnaire survey is based on several
previous studies. The importance of cost and management accounting practices has increased
more than ever. The reasons for this are the domestic and global competition getting severer by
globalization, decreasing profit margins, increasing input prices due the tightening energy
sources, economic crises etc.

 Objectives
The main objective that the study tries to achieve is to investigate whether particular attribute
That are indicative to cost accounting system so the study lies on the development of integrated
framework that are close for both cost system structure and cost information.
The paper is expected to contribute to the existing literature about the subject, especially in
developing markets. The paper primarily investigates the following points: product costing
methods used by the companies; difficulties faced in product costing; overhead allocation bases
used by the companies; usage areas of costing information; the reasons which increase the
perceived importance of cost accounting; and management accounting practices usage.

 Problem Statement
The problem of the article states that the issue of the cost and management accounting is able to
provide information of high quality is not new, but it is still attract a lot of observation in the
literature, so it’s critical to use a cost system that allows to supply relevant information, to
enhance flexibility and contributes to more effective and operational strategic control.
 Data Used in type of Quantitative method
This study adopted Quantitative research design because it provided flexibility and afforded the
researcher the opportunity to conduct an in-depth research and it provides immediate answer that
becomes useful for the research of the article.
The data for this study was obtained by means of a survey questionnaire conducted face-to-face
with 10 randomly chosen manufacturing companies in Ankara from various industries. The
questionnaire includes multiple choice, open-ended, and Likert scale questions. The
questionnaire consists of two parts:
a. General information on the business organizations and respondents; and
b. Cost and management accounting practices.
 Method of data analysis
Cost accounting structure and information quality properties empirical date was used and
collected from manufacturing industry, and focused on sizable companies that would likely to
have an established management accounting function.
 Findings of the Study
Finding indicates that majority of accounting system structure exert statistically positive
influence on cost information and quality dimensions.
 Conclusion
Cost information expresses its perceived usefulness by the users in terms of relevance, accuracy,
timeliness, with their needs, up-to-datedness for decision making purpose , in order to
investigate the existing relationship date was gathered from 119 manufacturing companies via
Questionnaire.
 Recommendation policy
To enhance transparency and consistency, special attention should be paid to standardized
accounting structure and cost information and greate baseline against which actual costs are to be
compared, and calculate the variance b/w the actual and the standard.

 My evaluation of the article based on the points 2 through 4

There are the theories in the paper and they compare:-
Management accounting system provide information that make mangers make better decision
making, many researchers support the use of management accounting system on the basis of
refinement of information that the system provide it, and to encourage organization to bring in
recently developed management accounting techniques.
 The experts of the article argues supporting
The author of the article argues that the degree to which cost accounting information can be
reflected by extent to which the latter is useful in relevant and useful for decision making, thus
the managers should provide the information needed in order to make better decision making to
introduce new products in the market,
 conclusions of the article with the findings of the study
I believe that the conclusion of the finding have important implications for the experts and
professional with respect to cost accounting system as well as cost evaluation.
 My comment of the article
The article provide support evidence that perception of the effectiveness of a firms cost
management can be valid indicator of how well the system is designed to support strategic and
operational decision that are necessary for the implementation of manufacturing strategy.

My opinion about
Strength of the Article
 it is an opportunity for all stakeholders involved in the article to meet cost accounting
system which are essential to understand cost information system requirements
 The article adopted quantitative method so it can focus on facts and information’s then
the data analysis can extend to the rest of the population so every one can benefit from
this work.
Weakness of the article
In my opinion I didn’t see any weakness of this article and I can say this article was very helpful
to address the weaknesses of the government of Greece In their cost accounting and to strength
those weakness