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A survey of cost and management accounting practices in Sri Lanka

Conference Paper


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Abstract


  • Significant changes occurred in business environment in the last two decades have

    resulted business organisations to change their cost and management accounting

    practices to provide more relevant information for managers facing the challenges

    created by the changes in the business environment. A large number of prior studies

    have attempted to capture these changes in cost management accounting practices of

    business organisations in various countries. However, vast majority of these studies

    have been limited to examine such practices in developed countries, leaving a vacuum

    in the academic literature in relation to studies on emerging markets. This paper presents

    an initial analysis of results of a survey conducted on 55 listed companies in Sri Lanka,

    an emerging market in Asia. It examines the extent to which various traditional and

    modern management practices are used by business organisations. The survey results

    reveal that while most of the Sri Lankan companies are frequently using conventional

    cost and management accounting techniques such as budgeting, standard costing

    and Cost-Volume Profit analysis with varying level of use from low to high, many

    companies are still reluctant to use the modern cost management tools such as Activity

    Based Costing, Balanced Scorecard, Lifecycle costing. The over emphasis placed on

    the use of financial accounting based reports for decision-making seems to have

    contributed to the lack of use and development of various effective cost and

    management accounting practices in Sri Lanka.

UOW Authors


  •   De Zoysa, Anura
  •   Bhati, Shyam (external author)
  •   De Zoysa, Menik (external author)

Publication Date


  • 2014

Citation


  • De Zoysa, A., Bhati, S. & De Zoysa, M. (2014). A survey of cost and management accounting practices in Sri Lanka. 10th International Conference on Business and Finance (pp. 6-6). India: IBS Hyderabad & Spears School of Business.

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1481&context=buspapers

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/479

Start Page


  • 6

End Page


  • 6

Place Of Publication


  • http://10times.com/icbf-hyderabad

Abstract


  • Significant changes occurred in business environment in the last two decades have

    resulted business organisations to change their cost and management accounting

    practices to provide more relevant information for managers facing the challenges

    created by the changes in the business environment. A large number of prior studies

    have attempted to capture these changes in cost management accounting practices of

    business organisations in various countries. However, vast majority of these studies

    have been limited to examine such practices in developed countries, leaving a vacuum

    in the academic literature in relation to studies on emerging markets. This paper presents

    an initial analysis of results of a survey conducted on 55 listed companies in Sri Lanka,

    an emerging market in Asia. It examines the extent to which various traditional and

    modern management practices are used by business organisations. The survey results

    reveal that while most of the Sri Lankan companies are frequently using conventional

    cost and management accounting techniques such as budgeting, standard costing

    and Cost-Volume Profit analysis with varying level of use from low to high, many

    companies are still reluctant to use the modern cost management tools such as Activity

    Based Costing, Balanced Scorecard, Lifecycle costing. The over emphasis placed on

    the use of financial accounting based reports for decision-making seems to have

    contributed to the lack of use and development of various effective cost and

    management accounting practices in Sri Lanka.

UOW Authors


  •   De Zoysa, Anura
  •   Bhati, Shyam (external author)
  •   De Zoysa, Menik (external author)

Publication Date


  • 2014

Citation


  • De Zoysa, A., Bhati, S. & De Zoysa, M. (2014). A survey of cost and management accounting practices in Sri Lanka. 10th International Conference on Business and Finance (pp. 6-6). India: IBS Hyderabad & Spears School of Business.

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1481&context=buspapers

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/479

Start Page


  • 6

End Page


  • 6

Place Of Publication


  • http://10times.com/icbf-hyderabad