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About this book

This book is an essential guide to understanding how managers in China and Southeast Asia make effective economic decisions. In today’s competitive global economy, it’s vital to grasp how the most dynamic part of Asia is employing accounting tools in actual practice. The carefully crafted empirical studies presented here demonstrate the application of management accounting concepts in a variety of economic scenarios. Overall, these comparative investigations describe theory and common practices in a way that yields insights for both strategic and day-to-day problem solving. Accordingly, Management Accounting in China and Southeast Asia will interest graduate students, professional practitioners, and researchers in accounting, management, and finance.

Table of Contents



This chapter describes the origins of Management Accounting in China and Southeast Asia as a collaborative project undertaken by members of the Asia-Pacific Management Accounting Association. It places the project in the context of the region’s socioeconomic development, gives a brief overview of the subsequent country-specific studies, and highlights some of the studies’ main findings.
The Asia-Pacific Management Accounting Association (APMAA) is a community of academic experts and professional practitioners. It is a forum that supports high-quality research, teaching, continuing education, and policy development with regard to management accounting in the Asia-Pacific region. To do so, APMAA brings together colleagues from all over the world. Accordingly, it creates ideal preconditions for collaborative endeavors.
This volume is the product of one such joint effort. It offers deep insights into the current practice of management accounting in selected countries of East and Southeast Asia that the research team would like to disseminate among persons sharing its interests. Rather than final conclusions, though, the book represents just the beginning of comparative research in this area. Hopefully, it will stimulate discussion among other investigators and motivate them to undertake additional studies in the Asia-Pacific region.
Robert C. Rickards, Rolf Ritsert, Kanitsorn Terdpaopong

Chinese Enterprises’ Use of Management Accounting Tools

Purpose: To explore Chinese enterprises’ adoption of management accounting tools, the frequency of their use, managers’ satisfaction with them, and the tools’ perceived importance.
Design/methodology/approach: Online survey, personal interviews, correlation, and t-test analyses.
Findings: The management accounting instruments utilized by Chinese enterprises vary widely. Nevertheless, in keeping with the evolutionary theory of management accounting instrument development, more traditional tools enjoy more widespread use than newer ones do. The frequency of a tool’s employment, managers’ satisfaction with it, and their perception of its importance are highly correlated. Yet, a sample subgroup consisting only of tool-users does not differ significantly from all respondents regarding the instruments’ importance.
Research limitations: There being no readily accessible source to ensure random selection of the units of analysis, the study relies on a convenience sample, management accounting tools employed in earlier research, and financial executives’ interview responses. Examination of a random sample, different management accounting instruments, and respondents in other managerial functions conceivably could yield divergent results.
Robert C. Rickards, Rolf Ritsert

Management Accounting Practices in Indonesia

This study obtains empirical evidence about traditional and strategic management accounting practices (MAPs) in companies in Indonesia. Traditional MAPs include management accounting systems for costing, budgeting, performance measurement, and decision-making. Strategic management accounting practices encompass activity-based management, analysis of competition, industry analysis, long-range forecasting, value chain analysis, long-range forecasting, target costing, and total quality management. Data collection uses both a questionnaire and content analysis of job vacancies published on the websites of Indonesian firms. Data analysis uses descriptive statistics based on the average intensity of use. The results show that strategic management accounting techniques for budgeting, costing, and performance evaluation are still intensively used. Meanwhile, regarding strategic management accounting systems, the five most frequently used are activity-based management, analysis of competition, industry analysis, long-range forecasting, and value chain analysis. The results show that while traditional MAPs still are used intensively, strategic management accounting systems also are starting to be employed more frequently.
Grahita Chandrarin, Diana Zuhroh

Management Accounting Practices in Export-Oriented Manufacturing Small and Medium Enterprises in Malaysia

Most studies of management accounting practices (MAPs) globally, and specifically of Malaysia, mainly focus on large manufacturing companies. This study examines the adoption of MAPs among small and medium enterprises (SMEs) engaging in export-oriented manufacturing in selected industrial hubs in Malaysia. In the digital era, these firms are expected to adopt some relatively sophisticated management accounting techniques in their manufacturing processes and marketing strategies. Based on 2019 statistics, SMEs constitute about 98.5% of all Malaysian business establishments. Most export-oriented SMEs are very structured in nature as they must adhere to stringent international market requirements. The objectives of the present study are to evaluate the level of perceived business uncertainty facing these SMEs and to explore their level of MAPs-adoption. Questionnaires were used to collect data from the export-oriented SME respondents: of the 410 distributed questionnaires, 78 (19%) were completed, returned, and used for analysis. The results show that, overall, export-oriented firms mainly market their products within the ASEAN region and, as such, most respondents perceived their business environment as “stable and predictable.” In relation to MAPs, it is evident that the export-oriented manufacturing SMEs rely more on traditional tools and techniques, like operating budget, standard costing, capital budgeting, variable costing, cost variance analysis, full costing, CVP analysis, and ratio analysis, for the purpose of product cost information.
Ibrahim Morshidi, Normah Omar, Jamaliah Said, Suzana Sulaiman, Ibrahim Kamal Abdul Rahman

The Stages of Management Accounting Evolution in Taiwan’s Hotel Industry: Evidence from Taipei City

This study investigates how management accounting in the hotel industry has evolved in Taiwan. We use hotels in Taipei City as the sample because, as capital of Taiwan, Taipei City is where most medium- and large-sized hotels are located. The focus on Taipei City provides a valuable opportunity to reduce any potential size effect. Based on the evolution model proposed by the International Federation of Accountants (IFAC), the study shows that the majority of sampled hotels are moving from cost determination and financial control tools toward provision of information for management planning and control practices. However, 23.3% of the sample hotels have moved toward a more sophisticated role, creating value through an effective resource usage.
Hsuan-Lien Chu, She-Chih Chiu

Management Accounting Practices in Thailand: Case Study of Manufacturing Companies

This chapter provides basic facts concerning Thailand’s economy, including GDP by key sectors and foreign direct investment (FDI). It also explores the management accounting practices (MAPs) used in Thailand. This chapter focuses on MAPs implemented by large Thai manufacturing companies. In 1998, IFAC released a report describing the management account evolution. Although the report has enjoyed wide readership in scholarly circles, MAPs have received relatively little attention from businesses. In the present study, a survey questionnaire is used to collect information. Of the questionnaires sent to 1500 companies, 205 were usable, for a 13.67% response rate. The questionnaires sought information about management accounting practices of the companies. The practices were based on the stages of management accounting according to the IFAC evolution model. Here, cluster analysis is used to as-sign data into four clusters using hierarchical agglomerative methods. Then discriminant analysis is employed to ensure the accuracy of the cluster analysis. We find that respondents rely more on traditional tools and techniques, namely budgeting and controlling for product cost. In addition, we discover that the new advanced MAPs are increasingly being used by many large Thai companies. Although MAPs are used to create value for large Thai companies, they are not being used at the highest stage. Considering that advanced technologies are available and that there are advances in the way business is conducted, the implementation of modern management accounting procedures appears to be far behind.
Kanitsorn Terdpaopong, Nimnual Visedsun, Kanibhatti Nitirojntanad

Management Accounting Practices in Vietnamese Enterprises

The objective of this chapter is to study the current evolutionary stage of management accounting practices (MAPs) in Vietnam. It explores the extent to which various MAPs are implemented in Vietnamese enterprises using a survey to collect information and the IFAC model as an international measure. Of the 700 companies that received the questionnaires, 250 provided usable responses, a 35.7% response rate. The results indicate that the majority (66.8%) of Vietnamese enterprises are in the first two stages of the IFAC model. Fewer enterprises (33.2%) have reached Stages 3 and 4, the higher evolutionary stages of the IFAC model. It is found that the most widely adopted MAPs in Vietnamese enterprises are standard costing, absorption costing, budgeting for product cost controlling, budgeting for revenue, financial ratios analysis, profitability ratio analysis, and profit analysis for products. Additionally, the respondents report that the most important roles of management accounting in their enterprises are to evaluate enterprise performance, to use for planning and controlling, and to help make decisions on production or investment. Few enterprises appreciate the roles that modern management accounting play in enhancing resource efficiency and reducing waste. Therefore, this research provides empirical evidence on the advancement of MAPs as employed by Vietnamese enterprises. For researchers and managers in Vietnam and other countries, it sheds light on the current stage of Vietnamese management accounting practices based on an international measure.
Thi Phuong Dung Nguyen, Thi Hong Thuy Nguyen, Thi Huong Lien Nguyen, Thi Hai Ha Nguyen
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