African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4180

Article in Press


Ismael Hussein Malela

  •  Received: 21 May 2021
  •  Accepted: 01 December 2021
This study attempts to investigate the degree of Adoption of cost and management accounting techniques in Selected Ethiopian Industry Parks Further, factors affecting the adoption of those techniques were examined. Finally, the perceived effect of adopting these techniques on the company's operating efficiency and financial performance were evaluated. In doing so, Descriptive and explanatory research designs were used for achieving multi-dimensional objectives of this study. Simple Proportional Allocation stratified sampling Technique was employed for determining the sample size from each stratum of shades of Industry parks of each firm. A total sample of 506 Selected Industry Park Shades was included in this study & structured survey Questionnaires were distributed to each of them. Consequently, 499 usable Questionnaires were collected back and used for analysis and discussion of results. The finding of this study revealed that currently selected Ethiopian Industry Parks in study areas are gradually adopting cost and management accounting techniques. The widely adopted cost and management accounting tool were budgeting control techniques with a weighted mean average of 3.94 and standard deviation of .634. Throughput accounting was the least adopted technique by respondent firms. Further, multiple regression model analysis results indicated that 80.8% of the variation in the adoption of cost and management accounting techniques by Ethiopian Industry Parks was explained by factors included in the model. Finally, the finding of this study indicated that there was a significant effect of adopting cost and management accounting techniques on sample manufacturing firms operating efficiency and financial performance. The researcher recommended the management of Ethiopian Industry Parks to give due consideration for the adoption and implementation of sophisticated cost and management accounting techniques since it helps them to compete successfully and improve their overall Financial and Economic performance.

Keywords: Cost and Management Accounting Techniques, Cost Accounting, Management Accounting, Ethiopian Industry Parks.