Journal of Emerging Trends in Economics and Management Sciences: Home

Article Title:
Effective Management Accounting System in Food and Drinks Industries in Lagos State, Nigeria
by Adejuyigbe, S.B., Mogaji, P.B. and Adesida V. K.

Abstract:
A study was conducted and visitation was made to some food and drinks industries in Lagos, Nigeria. Data for management accounting were gathered and use to evaluate the effective implementation of management accounting systems for organizational performance in these manufacturing industries and analyses were carried out by the use of tables, frequencies and percentages. This work has helped the food industries to move forward by using self-assessment as a method for identifying improvement opportunities and assessing their progress towards business excellence. This may be increasingly imperative for the Nigerian food sector if trade liberalization continues to lead to greater international competition. The food industry has not been exposed to the same degree of international competition as some other industries. The results of this in-depth investigation covering budgeting, performance evaluation, costing, decision-making, communication and strategic analysis led to the conclusion that traditional management accounting is still very much alive and well in Lagos state food and drinks companies. Consequently, Given that there is some validity in this approach, it is recommended that companies benchmark themselves against the management accounting system in different stages of evolution and consider adopting ?more advanced? practices (such as the value creation ones). Also, adequate awareness should be given to manufacturing industries on the importance of effective management accounting system for optimum performance.

Keywords: effective management, accounting, food and drinks, optimum performance.

Download full paper