The research objectives of the thesis are to assess the status of applying accounting management techniques in enterprises; The influence of factors on the application of management accounting techniques in Northern Vietnam enterprises.
Trang 1INTRODUCTION
1 Rationales
In the opening and integrating trend, Vietnamese businesses are facing
fierce competition within domestic enterprises as well as with foreign companies
Vietnamese enterprises need to prepare in different aspects including capital,
technology, equipment and effective enterprise administration to stand firm and
prevail in this competition In order to improve management efficiency and help
these companies to have their high positions in the competition, administrators
need to be equipped with modern management knowledge supported efficiently by
information of management accounting It is significantly neccessary to conduct
research studying the actual situation of management accounting application as
well as factors’ impact on this application in enterprises so that appropriate
recommendations to promote management accounting’s development in
enterprises could be suggested As a result, the author selected the thesis topic
named "The factors’ impacts on the application of management accounting
techniques within enterprises in northern Vietnam "
2 Research objectives
The main research objectives of the topic are the actual status of management
accounting application in enterpries in northern Vietnam and the impact of a few
factors on this situation To be specific, the topic was conducted with the aim of
achieving following objectives:
- Assessing the status of implementing management accounting techniques in
enterprises in northern Vietnam
- Studying factors affecting the application of management accounting
techniques in enterprises in northern Vietnam
3 Research questions
How are techniques related to management accounting applied by companies in
northern Vietnam?
How do selected factors influence the application of management accounting
techniques in enterprises in northern Vietnam?
4 Research subject and scope
* Research subject
- Actual situation of applying some management accounting techniques in
enterprises in Northern Vietnam
- The relationship between a number of factors with the application of
management accounting techniques in enterprises in Northern Vietnam
* Scope of the research
The research selected a few companies to study the status of management accounting application The selected enterprises should be divided differently according to sectors, fields, types of ownership, scale and headquarters located in northern Vietnam’s provinces
5 Research Methods
The author used both qualitative research methods and quantitative research methods to conduct the research
Qualitative research was carried out through in-depth interviews and discussions with experts for better understanding of research issues, which would identify the scope of research, select independent variables and dependent variables in order to build up research model, design questionnaires, research procedure as well as analyse data
Quantitative research consisted of 2 parts: preliminary quantitative research and core quantitative research The purpose of preliminary quantitative research was to find out inappropriate points in survey questions and evaluate the reliability of the scale before conducting core research Official research was conducted to collect data for the purpose of quantitative analysis The revised questionnaire will be sent to enterprises listed in the survey sample to synthesize data Collected data will be cleaned for factor analysis, correlation analysis, model verification and research hypotheses by software SPSS 22
6 Contributions of the research
- In terms of academic, theoretical aspect: The thesis synthesized important
researches about the relationship of some factors with the implementation of management accounting in companies In addition to using contingency theory to explain and select independent variables in the research model, the thesis also applied institutional theory to explain the low level of using management accounting in enterprises in northern Vietnam
- In terms of practice: The thesis researched and pointed out the status of
implementing management accounting in enterprises in northern Vietnam Research results illustrated that most enterprises apply techniques in management accounting at
a low level compared to other countries in the region and the world
The thesis established research model and studied the factors’ influence on the application of management accounting techniques in northern Vietnam’s enterprises These factors in the thesis model included: competitive pressure, administrative decentralization in enterprises, the frequency of using IT, the rate of managers’interest
in management accounting as well as accountant’s professional qualifications Research results indicated that all of the factors listed in the model affected the management accounting in enterprises in northern Vietnam
Trang 2- New recommendations suggested from research results: Based on the
results, the author suggested recommendations to enhance the application of
management accounting in enterprises and thereby improve business management
efficiency
7 Research structure:
In addition to the introduction, the thesis consists of 5 chapters:
Chapter 1: Research background of the thesis
Chapter 2: Theoretical framework of management accounting
Chapter 3: Research methods
Chapter 4: Research results and discussion
Chapter 5: Conclusion and recommendations
CHAPTER 1 RESEARCH BACKGROUNDS RELATED TO THE THESIS
1.1 Researches on the status of application of Management Accounting in enterprises
The thesis reviewed domestic and foreign studies about actual situation of
Management Accounting application From this, the author synthesized results from
identical research projects in and outside Vietnam regarding the status of management
accounting application in enterprises
1.2 Researches in terms of factors affecting the application of management
accounting techniques
The thesis reviewed domestic and foreign studies about actual situation of
Management Accounting application From this, the author synthesized results from
identical research projects in and outside Vietnam regarding the status of management
accounting application in enterprises
1.3 Conclusion about previous studies and research gaps
Studies related to the topic were divided into two main groups The first
group included studies focusing on the status of management accounting
application in enterprises without studying the effects of factors on this application
The second group consisted of researches studying both the status of the application
and the factors’ impact on it In terms of theoretical framework, those researches
was mainly based on the contingency theory of Otley (1980) and the diffusion of
innovations Regarding researches’ purposes, they all worked with the aim of
studying the status of management accounting application in enterprises as well as
factors impacts on this application Regarding research methods, in addition to
some researches using qualitative research methods such as authors (Armitage &
Webb, 2013), the remaining researches applied quantitative research methods using
the Likert 5-point scale to determine the application’s situation and influencial
factors Research objectives of above thesises were management accounting techniques including traditional techniques and modern techniques However, the quantity and names of those techniques in each study were also very different.Studies were carried out in various businesses, in different geographical areas and in different economies in developed and developing countries So far, there have been 3 research projects about management accounting in Vietnam Nevertheless, the research of Nishimura (2005) and Nguyen Thi Phuong Dung (2014) only focused on identifying the actual stage of management accounting in Vietnamese enterprises in the process of developing management accounting Similarly, Doan Ngoc Phi Anh (2012) only studied the possibility of using western management accounting for Vietnamese businesses Although the purposes and methods of those researches may
be similar, the research objectives and the time conducting studies were different; consequently, the results were quite different Moreover, there have not been any projects in Vietnam working fully on the status of management accounting application
as well as factors’ influency regarding companies working in several business aspects, which is the gap for research
CHAPTER 2 THEORETICAL FRAMEWORK OF MANAGEMENT ACCOUNTING 2.1 The process of developing Management Accounting
The management accounting development was divided into 4 main periods
by IFAC (1998, p.84): Period I was from earlier until 1950, management accounting was called as cost accounting (Wilson and Chua, 1988) Characteristics
of techniques developed during this period focused on identifying costs and financial control such as standard costs, cost estimation, department reports, breakeven analysis techniques, systems assessing the departments’ productivity, transfer pricing method, financial performance indicators such as ROI, ROE, ROA, etc (Kaplan, 1984) The second period was ranging from 1950 to before 1965, the major points of this period switched to techniques for planning and control (Abdel-Kader, 2006) Techniques developing in this period included information analysis techniques for decision-making progress and activity accounting Period III was from 1965 to before 1985 in which the change of production technology and the use
of computers in automation processes changing the cost structure made the traditional cost allocation methods no longer available, as a result, the activity-base costing method was proposed by Kaplan and Norton Regarding the forth period from 1985 until now, management accounting concentrated on providing information to use resources efficiently and support the strategies implementation Management accounting techniques aimed to create added value for customers, shareholders and enterprises innovation
Trang 32.2 Content and techniques of Management accounting
2.2.1 Definition of Management Accounting:
There have been different definitions of Management accounting (Drury,
2012) According to the American Accounting Association, Management Accounting
was the process of identifying, measuring and communicating information which
allowed information’s users to evaluate and make decisions According to Nishimura
(2005), Management Accounting played the role of providing information for
managers to make decisions, set plans, control and measure operation efficiency
2.2.2 Management Accounting techniques
Based on the list of techniques which were used by Chenhall & Langfield-Smith
(1998), Luther & Longden (2001), El-Ebaishi et al (2003), Wu et al (2007), Doan
Ngoc Phi Anh (2012) together with Management Accounting techniques taught
popularly in Vietnamese universities, there were some techniques chosen for this
research, which included:
- Decision support techniques
- Cost accounting techniques
- Performance measurement system
- Types of estimates
- Strategic management accounting techniques
2.3 Theories applied in the research of Management accounting
2.3.1 Institutional Theory
Institutions are formal and informal rules, monitoring and enforcement
mechanisms, and value systems defined in the context in which the organizations
operate and interact with each other Applying institutional theory to explain the
enterprises’ application of management accounting techniques, Scapens (1993)
considered management accounting as a set of rules and habits, along with other
organizational rules and habits, which allows copying and is associated with
organizational life (Scapens, 1993) In the increasingly competitive environment and
scarce resources, enterprises must find ways to improve business efficiency through
effective decisions based on appropriate information The need for information which
was suitable for making decisions had motivated businesses to build and apply
management accounting techniques According to the mimetic processes, the
efficiency in the decision-making process based on management accounting
information of companies also spread to other enterprises, which made them imitate
the same way (normative pressures) Imitating large enterprises with strong influence
would increase the ability to be accepted and thus increase the viability (Nguyen Van
Thang, 2015, p.42) After acknowledging the effects and necessity of management
accounting techniques in improving business performance, the normative pressures
would help companies approach and apply management accounting techniques with models which were conducted successfully by previous enterprises
Institutional theory also refers to the matter of power under two perspectives: the power of employees in proposing and introducing new management accounting techniques based on the need to implement the plan, long-term goals as well as companies resources On the other hand, the introduction of new management accounting techniques would encounter resistance of forces that hindered the adoption of new technologies, which was in the form of "the power of system", with the aim of maintaining inherent stability and counteracting the change which was challenging them (Burns, Ezzamel, & Scapens, 1999)
2.3.2 Contingency Theory
Contingency theory was developed and mentioned in organization’s documents around the early 1960s During the mid-1970s, this theory was used by many studies to select and explain the effects of a number of uncertain indicators on the management accounting application of enterprises (Selto et al, 1995; Chenhall & Langfield-Smith, 1998; Chenhall, 2003)
The basic argument in contingency theory recommended by Otley (1980) in the research on management accounting was "there was no theoretical model which could fit for all kind of organizations." Each organization had its own characteristics of operation objectives and operating environment; therefore, it was necessary to establish an organizational model suitable for their activities (Otley, 1980)
CHAPTER 3 RESEARCH METHODS 3.1 Hypothesis and research model
Hypothesis H1: Competitive pressure had a positive impact on the application of management accounting techniques
Hypothesis H2: Decentralization in enterprises had a positive influence on the application of management accounting techniques.in enterprises
Hypothesis H3: The actual status of using information technology had a positive effect on the application of management accounting techniques in enterprises Hypothesis H4: The level of administrator’s interest in management accounting has positively impacted the application of management accounting techniques in enterprises
The theory of H5: Accountant’s professional qualifications had a positive influence on the application of management accounting techniques in enterprises The hypotheses were linked according to the research model as diagram 3.1
Trang 4Diagram 3.1 Research model
In the above model, there are independent variables and dependent variables
Independent variables include the following factors namely Competitive
pressure, Decentralization’s level, The status of information technology application,
The level of administrator’s interest in management accounting, Accountants’
professional qualifications
Dependent variable is the status of applying management accounting techniques
in enterprises
3.2 Research Methods
The thesis used both qualitative research methods and quantitative research
methods
3.3 Variables selection in the research model
3.3.1 Independent variables selection
From the original research model based on Contingency theory and with
reference to previous studies, the author discussed with experts about the relevance,
possibility and meanings of independent variables in the research model Selected
independent variables in the model were Competitive pressure, Decentralization’s
level, The status of information technology application, The level of administrator’s
interest in management accounting, and Accountants’ professional qualifications
3.3.2 Dependent variables selection
Management accounting techniques is a term which refers to techniques and tools
used to collect and analyze information with the aim of serving management functions
and management decision-making process in enterprises In order to make a method or
Competitivenes
Decentralization
Information
technology
Administrator
interest
Accountant
qualificationss
Management Accounting
H1
H2
H3
H4
H5
technique popular, user must understand fully its usage as well as its benefits Therefore, based on research materials, especially the study by Doan Ngoc Phi Anh (2012) as well
as the discussion with experts about management accounting methods, which were taught in universities, colleges and were applied widely in Vietnamese businesses, the thesis selected Management accounting techniques for the research model as followings:
Table 3.1 Selected methods / techniques
function
Classified by function
12 Standard cost and gaps analysis P Evaluating
16
Capital cost estimation (Payback,
Strategy
17 Capital cost estimation (NPV, IRR) S Strategy
Notes: B (Budgeting); C (Costing); D (Decision); P (Performance); S (Strategy)
3.3.3 Scale
The author used scales of previous studies to measure independent variables and dependent variables: Chenhall & Langfield-Smith (1998), Halma and Laats (2002), Abdel-Kader and Luther (2008), Karanja et al (2013), Sulaiman et al (2015), etc
3.4 Questionnaire establishment
The questionnaire was designed based on the questions which were used by previous authors such as Chenhall and Langfield-Smith, 1998; Wijewardena, 1999; Joshi, 2001; Hyvonen, 2005; Ahmad, 2012; Yalcin, 2012 This form was used by many research (Yalcin, 2012; Ahmad, 2012) The questionnaire consisted of three parts including Part 1 General information of the companies and respondents; Part 2: Survey of
Trang 5the application of Management Accounting in companies; Part 3: Factors affecting the
application of Management Accounting in companies
3.5 Selection of the sample and sample size
According to Nguyen Van Thang, if the population size is large and it is
impossible to identify the accurate value, the size can be calculated via this formula:
n = z
2( p*(1- p)
e2
In which:
n = sample size
z = the distribution value corresponding to the selected confidence rate (if the
confidence rate is 95%, the value of z will be 1,96…)
p = the estimate of the population’s percentage (which usually is 50% - the
population’s highest probability of occurring)
e = tolerance (+-3%, +-4%,+-5% )
If the confidence rate is 95%, the research sample scale is calculated according
to the above formula with 384 observations divided by a population of more than 10
millions (Thang, 2015b) According to that formula, the research will be required to
use 384 observations
CHAPTER 4 FINDINGS AND DISCUSSION 4.1 Characteristics of Vietnamese companies and description of the research
sample
4.1.1 Some characteristics of Vietnamese firms and Northern Vietnam companies
Majority of Vietnamese firms and Northern Vietnam companies are
small-to-medium sized (with the number of employees being less than 200) Companies with
more than 200 employees only take up roughly 2% Most of the surveyed firms are in
the commerce and service sector (29,53%) Companies in the manuafacturing and
processing sector account for 27.85% and the remaining are active in different
industries with their share standing at approximately 3%
Million billion, statistical yearbook Out of all active firms in Vietnam, the total
quantity of active Northern Vietnam companies is 236.580 making up 46.7% of the
market share These firms employ 7 million people which constitute 49,3% of the total
of 14 million employees working in companies nationwide The total amount of capital
of Northern Vietnam firms is more than 10 million billion VND accounting for 39,6%
of all companies’ capital in the country (which is more than 26 million billion VND)
In addition, Northern Vietnam companies achieve the net revenue being more than 17
million billion VND (Statistical Yearbook, 2017)
4.1.2 Description of the research sample
483 questionnaire forms were polled and after the clearning (eliminating forms with duplicated answers, inappropriate replies,conflicted responds…), 437 eligible forms were encoded and analyzed with the statistical system named SPSS 22
Table 4.1 Characteristics of surveyed companies
Business
Number of employees
4.2 Status of the application of Management Accounting in Northern Vietnam enterprises
Findings demonstrate the status of the application of Management Accounting in Northern Vietnam companies which is presented as below:
4.2.1 Status of the application of some cost accounting methods
In the three surveyed cost accounting methods, variable costing has the highest application rate being 26.1% It is followed by target costing with 19.5% application rate and activity-based cosing has the lowest rate of being applied (6.2%) Compared
to other countries provided by research of Chenhall and Langfield-Smith (1998), Joshi (2001), Abdel-Kader (2006), the application rate of these cost accounting methods in Vietnam Northern companies is relatively low
Taken business type into account, multi-industry and service companies possess the highest frequency rate of applying variable cost with 40% and 42,3% respectively Manufacturing firms rank third with 3,2% while construction companies have the lowest rate being 21,3% The application rate of remaining companies is lower than all companies’ average rate
Construction and service companies’ application rate of target costing is higher than the average rate being 24,7% and 26,9% respectively Remaining firms
in other sectors have the rate being lower than the average
Trang 6Companies infrequently apply the activity-based costing Except for service
firms with the application rate being 15,4%, companies in the remaining sectors allo
have the rate below 10% Notably, there was no record of commerce companies
applying this method
Overall, the frequency of surveyed firms using variable costing is comparatively
low Only service companies achieve the average point of 3,4 while companies in
other industries were recorded the average point of below 3
4.2.2 Status of the application of estimates
Findings showed that estimate rate reached more than 46.1% in construction firms
with production cost estimate having the highest rate (100,0%) and financial statement
estimate possessing the lowest rate (46,1%) The rates for consumption estimate, material
cost estimate and capital estimate were 52,8%; 65,2% amd 57,3% respectively
Manufaturing companies ranked the second regarding the application rate of
estimate Material cost estimate had the highest rate of being used with 52,6% while
financial statement estimate places last with 43,4% Production cost estimate,
consumption estimate and capital estimate had the application rate being 51,3%; 44,7%
and 51,3% respectively
Multi-industry firms finished the third in terms of the rate using estimate In
these companies, material cost estimate was applied most frequently with the rate
achieving 58,3% while financial statement estimate had the lowest rate of 31.7%
Consumption rate reached 53.3% Both production cost estimate and capital estimate
possessed the rate of 41,7%
Service companies used capital estimate most frequently with the rate being 65.4%
while production cost estimate has the lowest application rate of 15.4% Other estimate
all possessed the rate below 40% (38,5% for consumption estimate, 46,2% for purchase
estimate and 42,3% for financial statement estimate)
The application rate of estimates was relatively low in commerce firms
Production cost estimate was used with the lowest rate of 6,2% Other estimates including
financial statement estimate, capital estimate, for consumption estimate and purchase
estimate had the application rate being 38,1%; 48.5%, 45,4% and 46,4% respectively
The average point regarding the frequency using estimates among survey
companies ranged from 3,12 to 3,44 Purchase estimate was applied most frequently
with the average of 3,44 while financial statement estimate ranked the last with the
average of 3,12
In terms of business types, construction firms had the highest application rate of
estomates The average point for companies in this sector ranged from 3,35 to 4,37
Commerce firms had the average point below the average value In addition to the
production cost estimate rarely being use, other estimates’ mean ranged around the 3
pint value (2,78 to 3,09)
4.2.3 The application of indicators for activities’ evaluation
In addition to net profit indicator used by most companies, sale growth rate indicator had the application rate being more than 50% The revenue per employee indicator had lowest rate of being used (7,2% for commerce companies and 25% for manufacturing firms) Other indicators had the application rate below 40%
In addition to using net profit indicator frequently, surveyed companies applyed financial indicators to assess activities at a average rate (above 3,0) The revenue per employee indicator had the lowest applicaton rate of 2,6% The rate of using indicators in commerce companies was lower than the average rate of surveyed firms in general Surveyed companies infrequently used non-financial indicators to evaluate activities Customer satisfaction indicator was applied with the highest rate of 46,2%
in service firms Delivery-on-time indicator and time length for construction/production indicator were used with the rate of 45,0% and 41% in multi-industry companies and construction firms respectively The remaining indicators has the application rate below 40%
The frequency rate of using non-financial indicators was also relatively low with their mean being roughly 3,0
4.2.4 The application of information analysis techniques for decision-making
Regarding the usage of information analysis techniques to make short-term decisions, CVP analysis and profit analysis had the highest application rate of more than 53% while other techniques had the application rate ranging from 20 to 50% Corresponding to the application rate, the degree of using CVP analysis and profit analysis reached above the mean (3,4) while other techniques were around 3,0
In terms of the usage of information analysis techniques to make long-term decisions, internal rate of return (IRR) was the most popular technique in commerce companies (88,7%) and it was payback period for construction firms (51,7%) Other techniques had the application rate being lower than 50%
4.2.5 The application of Strategic Management Accounting (SMC)
Target costing was applied most frequently with the rate of 24,7% in construction firms Balanced scorecard was not used by any of surveyed companies Other techniques had the application rate being below 20% The low application rate led to the low mean of using strategic management accounting in surveyed firms In addition to target costing reaching a mean of 3,2, other techniques had a mean of below 3,0
4.3 Factors affecting the application of management accounting
There are five factors influencing the application of management accounting consisting of (1) Competition, (2) Decentralization in the company, (3) the application
of information technology, (4) Managers’ concerns with management accounting and (5) accountants’ qualifications
Results of hypotheses approved and disproved via Spearman coefficient testing and linear regression are demonstrated in Table 5.1 as below:
Trang 7Table 5.1 Approved and disproved positive hypotheses
Variables
Independent
Group 1
1
Hypothesis H1-1: Positive
correlation between Market
Competition and the application
rate of techniques to support the
decision-making process exists
Techniques
to support the decision-making process
Competition Approved
2
Hypothesis H1-2: Positive
correlation between the degree of
decentralization in the company
and the application rate of
techniques to support the
decision-making process exists
The degree of decentralization
Approved
3
Hypothesis H1-3: Positive
correlation between the application
of information technology and the
application rate of techniques to
support the decision-making
process exists
Status quo of the application
of information technology
Approved
4
Hypothesis H1-4: Positive
correlation between managers’
concerns with management
accounting and the application rate
of techniques to support the
decision-making process exists
Managers’
concerns
Disproved
5
Hypothesis H1-5: Positive
correlation between accountants’
qualifications and the application
rate of techniques to support the
decision-making process exists
Accountants’
qualifications
Approved
Group 2
6
Hypothesis H1-6: Positive
correlation between Market
Competition and the application
rate of indicators to assess
activities exists
Indicators to assess activities
Competition Approved
7
Hypothesis H1-7: Positive
correlation between the degree of
decentralization in the company
and the application rate of
indicators to assess activities exists
Decentralizatio
n
Approved
8 Hypothesis H1-8: Positive
correlation between the application
Status quo of information
Approved
Variables
Independent
of information technology and the application rate of indicators to assess activities exists
technology
9
Hypothesis H1-9: Positive correlation between managers’
concerns with management accounting and the application rate
of indicators to assess activities exists
Managers’
concerns
Approved
10
Hypothesis H1-10: Positive correlation between accountants’
qualifications and the application rate of indicators to assess activities exists
Accountants’
qualifications
Approved
Group 3:
11
Hypothesis H1-11: Positive correlation between Market competition and the application rate of estimates exists
Estimates
Competition Approved
12
Hypothesis H1-12: Positive
decentralization in the company and the application rate of estimates exists
The degree of decentralization
in the company
Approved
13
Hypothesis H1-13: Positive correlation between the application
of information technology and the application rate of estimates exists
The application
of information technology
Approved
14
Hypothesis H1-14: Positive correlation between managers’
concerns with management accounting and the application rate
of estimates exists
Managers’
concerns
Disproved
15
Hypothesis H1-15: Positive correlation between managers’
concerns with accountants’
qualifications and the application rate of estimates exists
Accountants’
qualifications
Approved
Group 4
16
Hypothesis H1-16: Positive correlation between Market competition and the application rate of SMC techniques exists
Strategic Managemen
t Acoounting
Competition Approved
Trang 8No Hypotheses Dependent
Variables
Independent
17
Hypothesis H1-17: Positive
correlation between the degree of
decentralization in the company
and the application rate of SMC
techniques exists
(SMC) techniques
The degree of decentralization
in the company
Chấp nhận Approved
18
Hypothesis H1-18: Positive
correlation between the application
of information technology and the
application rate of SMC techniques
exists
The application
of information technology
Approved
19
Hypothesis H1-19: Positive
correlation between managers’
concerns with management
accounting and the application rate
of SMC techniques exists
Managers’
concerns
Approved
20
Hypothesis H1-20: Positive
correlation between accountants’
qualifications and the application
rate of SMC techniques exists
Accountants’
qualifications
Approved
Group 5
21
Hypothesis H1-21: Positive
correlation between Market
competition and the application
rate of techniques to support the
production exists
Techniques
to support the production
Competition Approved
22
Hypothesis H1-22: Positive
correlation between the degree of
decentralization in the company
and the application rate of
techniques to support the
production exists
The degree of decentralization
in the company
Approved
23
Hypothesis H1-23: Positive
correlation between the application
of information technology and the
application rate of techniques to
support the production exists
Status quo of the application
of information technology
Approved
24
Hypothesis H1-24: Positive
correlation between managers’
concerns with management
accounting and the application rate
of techniques to support the
production exists
Managers’
concerns
Disproved
25 Hypothesis H1-25: Positive Accountants’ Disproved
Variables
Independent
correlation between accountants’
qualifications and the application rate of techniques to support the production exists
qualifications
Source: Author’s own findings and analysis
Corresponding to positive disproved hypotheses, these following negative hypothese are approved:
Table 5.2 Negative hypotheses being approved:
variables
Independent
1
Hypothesis H0-4: Positive correlation between managers’ concerns with management accounting and the application rate of techniques to support the decision-making process does not exist
Techniques
to support the production
Managers’
concerns Disproved
2
Hypothesis H0-24: Positive correlation between managers’
concerns with management accounting and the application rate
of estimates does not exist
Estimates Managers’
concerns Disproved
3
Hypothesis H0-24: Positive correlation between managers’
concerns with management accounting and the techniques used
in production does not exist Techniques
used in production
Managers’
concerns Disproved
4
Hypothesis H0-25: Positive correlation between managers’
concerns with management accounting and accountants’
qualifications does not exist
Accountants’
qualifications Disproved
Source: Author’s own findings and analysis
Via negative hypotheses being approved, there are conclusions regarding the correlation betwwn independent variables and dependent variables presented as below:
Conclusion 1: There was no evidence for the existence of positive correlation
between managers’ concerns with management accounting and the application of information analysis techniques to support the decision-making process (Break-even analysis, payback period, net present value, CVP analysis, internal rate of return, products’ profit analysis, customers’ profit analysis, providers’ cost analysis)
Trang 9Conclusion 2: There was no evidence of a positive relationship between the
interest of the administrators in the management accounting with the level of using
some types of estimates in enterprises (consumption estimates, purchase estimates,
money estimates and financial statements estimates
Conclusion 3: There was no evidence of a positive relationship between
administrator's interest in the management accounting and the qualifications of
accountants to the status of applying the techniques and targets to support production
(production estimates, production time, and product failure rate)
Results of hypothesis testing, independent variables: Competitive pressure,
degree of decentralization, status of IT application, managers' interest in management
accounting and professional qualifications of accountants all affected the application of
management accounting techniques in enterprises in North of Vietnam on statistically
significant basis Acceptable hypotheses are as follows:
Table 5.3: Hypotheses about the impact of factors on the application of
management accounting techniques in North Vietnamese enterprises
1 H1-1: There exists a positive correlation between competitive
pressure in the market and the level of using decision-making
support techniques
Accepted
2 H1-2: There exists a positive correlation between the degree of
decentralization in enterprises and the level of using
decision-making support techniques
Accepted
3 H1-3: There exists a positive correlation between the status of
applying IT in enterprises and the level of using decision-making
support techniques
Accepted
4 H1-5: There exists a positive correlation between the
qualifications of accountants and the level of using
decision-making support techniques
Accepted
5 H1-6: There exists a positive correlation between competitive
pressure in the market and the level of using performance
evaluations indicators
Accepted
6 H1-7: There exists a positive correlation between the degree of
decentralization in enterprises with the level of using the
performance evaluation indicators
Accepted
H1-8: There exists a positive correlation between the status of
applying IT in enterprises with the level of using the performance
evaluation indicators
Accepted
7 H1-9: There exists a positive correlation between administrators'
interest to management accounting with the level of using
performance evaluation indicators
Accepted
8 H1-10: There exists a positive correlation between the professional
qualifications of accountants and the level of using the
Accepted
performance evaluation indicators
9 H1-11: There exists a positive correlation between competitive pressure in the market and the level of use of estimation types
Accepted
10 H1-12: There exists a positive correlation between the degree of decentralization in enterprises with the level of using estimation types
Accepted
11 H1-13: There exists a positive correlation between the status of applying IT in enterprises with the level of using estimation types
Accepted
12 H1-15: There exists a positive correlation between the professional qualifications of accountants and the level of using of estimation types
Accepted
13 H1-16: There exists a positive correlation between competitive pressure in the market and the level of using strategic management accounting techniques
Accepted
14 H1-17: There exists a positive correlation between the degree of decentralization in enterprises and strategic management accounting techniques
Accepted
15 H1-18: There exists a positive correlation between the status of applying IT in enterprises and strategic management accounting techniques
Accepted
16 H1-19: There exists a positive correlation between the interest of administrators in management accounting with strategic management accounting techniques
Accepted
17 H1-20: There exists a positive correlation between the professional qualifications of accountants and strategic management accounting techniques
Accepted
18 H1-21: There exists a positive correlation between competitive pressure in the market and the level of using some production support techniques
Accepted
19 H1-22: There exists a positive correlation between the degree of decentralization in enterprises and the techniques to support production
Accepted
20 H1-23: There exists a positive correlation between the status of applying IT in enterprises and the techniques to support production
Accepted
Conclusion 4: The effect of independent variables on dependent variables is
shown in Table 5.4 as follows:
Trang 10Table 5.4 Summary of the effects of independent variables on dependent
variables
Standardized beta coefficient
Order of influence
1 Competitve
pressure
Decision support techniques 0,303 2 Performance evaluation
1
Strategic Management
5 Techniques to support production 0,263 4
2 The degree of
decentralization
Decision support techniques 0,864 1 Performance evaluation
2
Strategic Management
3 Techniques to support production 0,224 5
3 IT application
status
Decision support techniques 0,220 5 Performance evaluation
3
Strategic Management
2 Techniques to support production 0,231 4
4
The interest of
the
administrator to
management
accounting
Decision support techniques - Performance evaluation
2
Strategic Management
1 Techniques to support production -
5
Professional
qualifications
of accountants
Decision support techniques 0,189 2 Performance evaluation
4
Strategic Management
1 Techniques to support production -
Source: Summary of the author's analysis results
Research results in Table 5.4 indicated that:
Competitive pressure had the strongest impact on the use of performance indicators Competitive pressure requires businesses to effectively use resources and assess the performance of managers and departments Therefore, it was reasonable to increase the use of performance estimate indicators to provide administrators with information on the performance of departments and managers
The degree of decentralization in the business was associated with giving decisions to inferior managers and evaluating them through performance evaluation criteria Analysis results described that the impact of increased decentralization level
on the application of decision-making support techniques was the strongest The level
of decentralization increased by 1 point, making the application of decision support techniques increase by 0.864 points This is the strongest impact of the independent variables on the dependent variables
The application of IT had a compelling impact on the application of some types
of estimates Because estimation requires a lot of calculations, the application of IT has supported a lot of accountants in the calculation and estimation work
The interest of manager in management accounting had an influence on the application of management accounting techniques but still uncountable In addition to
an insignificant impact on the application of strategic management accounting strategies and operational evaluates indicators, this dependent variation did not affect the application of other management accounting techniques
Finally, the professional qualifications of accountants had the strongest impact
on the application of strategic management accounting Management accounting techniques has been developed in recent years Currently, there is still no agreement on the definitions and names of these techniques Accordingly, the application of these techniques requires understanding knowledge, application conditions as well as costs and general benefits Therefore, in order to apply strategic management accounting techniques, it is required that accountants must be mastery in these techniques
CHAPTER 5 CONCLUSION AND RECOMMENDATIONS 5.1 Conclusion about research findings
5.1.1 Current situation of applying management accounting techniques in enterprises in Northern Vietnam
Based on the results of empirical research, the thesis made conclusions about the current situation of low-level applying management accounting in enterprises in the North It also pointed out the causes of the short of techniques and management accounting methods application in enterprises, specifically:
Firstly, managers in enterprises in Northern Vietnam are not aware of the significant role of applying management accounting techniques in improving asset efficiency and creating a competitive position for businesses Therefore, the