Assessment of management accounting practices and supply chains and their impact on firm s performance evidence from indian industries

Abstract

newline This thesis titled, Assessment of Management Accounting Practices and Supply Chains newlineand their Impact on Firm s Performance: Evidence from Indian Industries presents the newlineresearch work undertaken to study the influence of management accounting practices (MAP) newlineon supply chain performance (SCP) and a combined study of MAP and SCP on firm financial newlineperformance (FFP). newlineThe term cost defines the success or failure of a product or service. Cost is ascertained by newlineapplying management accounting tools and techniques to the system or process of product newlineand services. Modern day companies require real-time information of their costs (product, newlineprocess, and services) to analyze the actual against the budgeted which ultimately affects the newlineoverall profit of the companies. Cost control can be achieved through modern management newlineaccounting tools and techniques and becomes a handy tool for the decision makers. newlineHowever, it is a reality, the majority of the decision makers are unaware of or ignoring these newlinemanagement accounting tools or techniques. This has resulted in weaker decision making newlinewhich affects the company in the long run. Management accounting practices in India newlinerequire the direct intervention of practicing managers to adopt various practices through newlinevarious cause and effect relationships which will provide them with accurate and to-thepoint newlinerequired information for taking the company to a higher level of success. newlineHugos, M. (2003) has stated that supply chains consist of five significant drivers, i.e., newlineproduction, inventory, location, transportation, and information and these five drivers should newlineinteract with each other to increase the throughput of the supply chains. The critical link is newline information which provides the inputs to the other processes for optimization of process newlineand costs. We focus on the information regarding costs in the supply chains which forms the newlinebasis for decision making. Indian industries rely on external financial accounting systems newlinefor obtaining the information for decision making. The reliability of the accountants on newlinetraditional management accounting methods has been a barrier for the new age managers to newlineobtain information that provides linkages between operational, finance taking the customers, newlineproduct and service aspects of the supply chains. Add to it, this has been a regular complaint newlinefrom the supply chain managers that are often accounting information lacks transparency newlineand not reliable. Often it has been seen that supply chain managers lack to the knowledge of newlineadopting modern management accounting practices which will add value to the supply chain newlinesystem and process. So it is essential that supply chain managers and accounting newlinex newlineprofessionals work in tandem to adapt to various modern management accounting practices newlinewhich will provide meaningful insights to a better decision making and provide impetus in newlineincreasing the company value. newlineAgainst the above preamble, this study was envisaged to find the influence of adoption of newlinevarious management accounting practices and their contribution to firm financial newlineperformance through supply chain performance in Indian industries. Literature review on newlinethe topic resulted in that though there have been studies on adoption of management newlineaccounting practices in other countries, the literature of influence of management accounting newlinepractices on supply chain performance in the Indian context has not been studied. From an newlineIndian context, studies have been carried out on the influenc