AUTHOR/S: Ma. Corazon Gabayan, Leopoldo Medina, Ryan Morales, Cleofe Arib, Margie Clavano
DATE COMPLETED: December 17, 2012
The Philippine Micro, Small & Medium Enterprises (MSMEs) sector accounted for 99.6% of the country’s total establishments. Despite their number, they have not contributed much to our economy. These enterprises are the easiest to create, the fastest to grow and develop but the most difficult to sustain. For business growth to be more sustainable, decision makers of such enterprises must be well informed prior to any economic decision. The accounting information are said to be important to permit informed judgments and decisions. But in most companies accounting information are created to comply with the requirements of the external users.
Management accounting is another field of accounting which is concerned with providing information to internal users who direct and control its operations. Management accounting practices (MAP) are proven to have contributed a lot to the success of different companies especially in the United States and United Kingdom.
The study described the extent of MAP of the MSMEs in the Davao Region. It was found that the selected MSMEs taken as a whole had moderate MAP in all areas except for CVP analysis which is extensively practiced. When these MSMEs are grouped according to their profile, structure and extent of MAP, several poor practices emerged. By grouping the MSMEs according to the extent of MAP three groups was created which showed differences in their practices.
The study also described the challenges for adoption of MAP. It was found that MAP of MSMEs is obstructed by lack of education from professional and academic organizations.
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