Joseph Mbawuni & Anderson Ronald Anertey ‘‘

Exploring Management Accounting Practices in

Emerging Telecommunication Market in Ghana’’

Accounting and Finance Research journal

Vol. 3, No. 4; 2014

Article review

Submitted to Arega Seyoum (Phd)

Name: Gedamu
Gebreyesus
ID: MBA/1751/11

February, 2020

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 Abstract

This research examines the practice of management accounting

telecommunication sector of in Ghana. The study aims at revealing use
of the management accounting practice and analyse the adoption MAP
the mobile telecom industry. The study used the data collected from
professions in accounting and finance in MTN Ghana through a cross-
sectional survey.
The study findings show that as MTN practices an out-dated budgeting
that has financial measures orientation. The use of costing systems by
MTN Ghana is quite low; prevalent among them are departmental
overhead rate and Activity-based Costing. Overall, this study provides
valuable understandings into the nature of MAPs applied by
telecommunication companies in emerging markets in developing
countries.
Introduction
Adoption and use of management accounting practice has become common practice in the
modern business operation. This review is based on the work of the Joseph Mbawuni &
Anderson Ronald Anertey; Joseph Mbawuni is is Lecturer in Management Studies, Faculty of
Business Education, University of Education, Winneba, Ghana. This paper focuses on
examination of use of management accounting practice and assesses the reason MAPs
adoption of local contexts of MTN in Ghana. While this study provides valuable
understandings into the nature of MAPs applied by telecommunication companies in
emerging markets in developing countries there are limitations related to the reliability,
sample, and generalizability of results.
Summary of the article
Anertey and Mbawuni (2014) used sample of 100 selected from the target population of 300
using convenient and purposive sampling techniques along with Self-administered structured
questionnaire was used to collect primary data from the respondents about Information on
mainstream practices of management accounting that are relevant to the telecommunication
sector in Ghana . Finally, the collected data were analysed using descriptive statistics through
SPSS. The results show that the most used category of MAPs are strategic analysis practices
and budgeting system with their unique features of MTN Ghana context. Finally, Moderate
number of respondents makes use of decision making tools beyond

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 product profitability and customer profitability analysis. The use of costing
systems by MTN Ghana is quite low, but the prevalent among them are
departmental overhead rate and Activity-based Costing. The most
important reasons for the firm’s adoption of MAPs are global competition,
increasing cost and economic crises.

Article Critique

The researchers discussed an important topic of management accounting practice to improve

adoption efforts in mobile telecommunication sector in Ghana. The approach of management
accounting practice could be useful for mobile telecommunication as it would allow them to
have importance in creating competitive mobile telecommunication business.

Significant results were noted in the results of this study, but there are limitations to these
findings. First, the sample size was small i.e. out of 300 accounting and finance staffs who
were invited to participant only 100 staffs only from MTN Ghana. Such a small sample size it
is difficult to generalize these findings to the larger mobile telecommunication industry of
Ghana. In addition, there is no sufficient information how many of the participant completed
the questioner; that is challenge difficult to understand response rate of the participants verify
the validity results. Anertey and Mbawuni (2014) used conceptual framework that shows
Key MAPs Dimensions, but there is no enough evidence whether the framework works for
the Mobile telecommunication business context.

Conclusion

This research contributes to the existing knowledge of MAP

telecommunication industry developing world. Future research on MAPs of
business with a clear description of the suitable framework of MAP for Mobile
telecommunication business context along with a larger more diverse sample to provide
evidence on use of it and reasons of MAP adoptions in the sector.

Reference

Terry Harris (2014) ICTs and the Accounting Profession in a SIDS journal of
Accounting and Finance Research, URL: http://dx.doi.org/10.5430/afr.v3n4p71

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