MANAGEMENT ACCOUNTING CONTROLS AND ORGANIZATIONAL PERFORMANCE OF QUOTED CONSUMER GOODS FIRMS IN NIGERIA

Abstract

This research study explores the impact of management accounting controls on organizational performance of quoted consumer goods firms in Nigeria. Management accounting control was proxies by budgetary control, standard costing, and balanced scorecard while organizational performance was proxied by market share. The population of the study consist of 20 quoted consumer goods firms in Nigeria, the study utilized judgmental sampling technique to determine the sample size. Primary data were collected through the distribution of 300 well structured five-point Likert-scaled questionnaires, of which 283 were returned and deemed suitable for analysis. The Pearson product moment correlation coefficient, facilitated by the Statistical Package for Social Sciences (SPSS) version 22, was employed to test the formulated hypothesis. The analysis revealed a strong, positive, and significant relationship between management accounting controls and organizational performance of quoted consumer goods firms in Nigeria. Specifically, budgetary control, standard costing, and the balanced scorecard were found to be effective tools in enhancing market share of quoted consumer goods firms in Nigeria. The study concludes that management accounting controls, as represented by budgetary control, standard costing, and the balanced scorecard, are crucial determinants of organizational performance in quoted consumer goods firms in Nigeria. The study recommended among others that consumer goods firms should continue to strengthen their management accounting controls, with focus on budgetary control, standard costing, and the balanced scorecard, to sustain and enhance their market share. Additionally, firms are encouraged to invest in training and development, adopt advanced management accounting software, and foster a culture of continuous improvement to maximize the benefits of management accounting controls.