Managerial Accounting Practices and Efficiency in Emerging Asian Economies

Abstract

Managerial accounting practices (MAP) are instrumental in increasing efficiency and effectiveness of business processes especially in emerging economies where resources are scarce and competition is very intense. This paper examines the practice of managerial accounting and its effects on the efficiency of operations and financial in the choice of the emerging Asian economies such as India, Indonesians, Vietnam, and the Philippines. The most important managerial accounting tools focus on budgeting, variance analysis, performance measurement, and cost management techniques are highlighted and the impacts of their application on decision-making and resource allocation are discussed. The results of the findings indicate that the increased efficiency of operations, cost control, and improved strategic decision making are observed in firms which implement structured managerial accounting practices. The paper also examines the problems of adopting managerial accounting in the emerging economies such as inadequate technological infrastructure, staff shortage of skilled staff and cultural factors. The study has also added to the knowledge on how managerial accounting practices can be used as a strategic instrument of increasing the efficiency of firms within the background of developing Asian economies.