Title: The benefits of management accounting practices in manufacturing and service firms: a Finnish study

Authors: Adebayo Agbejule, Jonna Huusko

Addresses: Department of Production and Mechanical Engineering, Vaasa University of Applied Sciences, Wolffintie 30, 65200 Vaasa, Finland. ' Deloitte and Touche Oy, Porkkalankatu 24, Helsinki, Finland

Abstract: The paper uses a survey method to explore the extent to which manufacturing and service firms have benefited from a range of traditional and contemporary Management Accounting Practices (MAPs) in Finland. The findings indicate that overall benefits of contemporary MAPs, such as activity-based management and target costing, are higher than the traditional MAPs for both manufacturing and service firms. However, the benefits of traditional MAPs, such as absorption and variable costing, are higher in service firms than in manufacturing firms. The evidence suggests that majority of the firms have benefited from a range of contemporary MAPs that emphasise strategic focused techniques with less emphasis on formal strategic planning. The results of this study also suggest exploring the different combinations of MAPs and not as individual practices.

Keywords: management accounting practices; performance measures; manufacturing; services; perceived environmental uncertainty; firm size; Finland.

DOI: 10.1504/IJSEM.2011.042782

International Journal of Services, Economics and Management, 2011 Vol.3 No.4, pp.354 - 375

Published online: 04 Oct 2011 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article