Investigation of Impact of Management Accounting Practice on Financial Performance of Manufacturing Companies in Gaborone, Botswana

Abstract

This study aimed at examining the impact of management accounting practices on performance of manufacturing firms in Botswana. The study use a quantitative research approach and data was collected from four big manufacturing firms of Botswana in different sectors food processing, construction etc. A sample of 40 participants was purposely selected from managers and accounting personnel from selected firms. The statistical package for the social science (SPSS) version 25.0 and regression model were used to analyze data. Regression analysis was taken to check the relationship between management accounting practices and performance. The study showed that costing system, budgetary system, performance evaluation system, strategic management and information for decision-making are the key management accounting practices mostly adopted by manufacturing companies in Botswana and these management accounting practices positively influence the performance of manufacturing companies in Botswana. The study then recommends that most of these management accounting practices has to be adhered to if managers want to increase performance.