An evaluation of the role of cost management control systems on organisational performance in public enterprises in Namibia: a case study of the Namibia airports company
- Authors: Shindobo, Teopolina
- Date: 2018
- Subjects: Cost accounting , Activity-based costing , Performance standards -- Namibia -- Evaluation , Organizational effectiveness -- Namibia
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: http://hdl.handle.net/10948/35785 , vital:33812
- Description: The primary goal of this study was to evaluate the role of cost management control systems (CMCS) on organisational performance of public enterprises in Namibia, using Namibia Airports Company (NAC) as a case study organisation. NAC uses the activity based costing (ABC) management control system and is still making losses, the auditor General have recommended that there is a need to evaluate the CMCS used by the NAC and their expenditure. In pursuing the primary objective of the study, four secondary objectives were therefore developed. The first objective was concerned with evaluating the purpose of the CMCSs in organisational decision making process. The second objective was concerned with analysing the effect of CMCSs on organisational performance in public enterprises. This was also achieved through a comprehensive review of literature. The third objective dealt with the design of a suitable methodology. The last objective was concerned with conclusions and recommendations of the study. The study followed a quantitative research methodology and a total of 100 questionnaires were self-administered to the respondents. Sixty-five questionnaires were returned with usable responses and were captured for analysis. Statistical analysis was applied in order to meet the requirements of research methodology as well as record and analyse the research findings. The study used descriptive statistics, reliability statistics, factor analysis and one way variance analysis (ANOVAs). Factor analysis was performed on the elements used to measure the impacts of CMCSs on the organisational performance of the Namibia Airports Company. Four key impacts of CMCSs were identified in this study. ANOVAs were employed as a way of determining significant differences between groups with regard to the factors that were identified. The finding of the study revealed that, the level of employee involvement in cost management activities is relatively weak at Namibia Airports Company despite a higher frequency of using the CMCSs. There is a significant effect on financial performance of the organisation as a result of employing CMCSs. The significant impacts of CMCSs on the organisational performance of the Namibia Airports Company include opportunities for improving financial performance management, efficiency in service delivery, and strategic decisions.
- Full Text:
- Date Issued: 2018
- Authors: Shindobo, Teopolina
- Date: 2018
- Subjects: Cost accounting , Activity-based costing , Performance standards -- Namibia -- Evaluation , Organizational effectiveness -- Namibia
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: http://hdl.handle.net/10948/35785 , vital:33812
- Description: The primary goal of this study was to evaluate the role of cost management control systems (CMCS) on organisational performance of public enterprises in Namibia, using Namibia Airports Company (NAC) as a case study organisation. NAC uses the activity based costing (ABC) management control system and is still making losses, the auditor General have recommended that there is a need to evaluate the CMCS used by the NAC and their expenditure. In pursuing the primary objective of the study, four secondary objectives were therefore developed. The first objective was concerned with evaluating the purpose of the CMCSs in organisational decision making process. The second objective was concerned with analysing the effect of CMCSs on organisational performance in public enterprises. This was also achieved through a comprehensive review of literature. The third objective dealt with the design of a suitable methodology. The last objective was concerned with conclusions and recommendations of the study. The study followed a quantitative research methodology and a total of 100 questionnaires were self-administered to the respondents. Sixty-five questionnaires were returned with usable responses and were captured for analysis. Statistical analysis was applied in order to meet the requirements of research methodology as well as record and analyse the research findings. The study used descriptive statistics, reliability statistics, factor analysis and one way variance analysis (ANOVAs). Factor analysis was performed on the elements used to measure the impacts of CMCSs on the organisational performance of the Namibia Airports Company. Four key impacts of CMCSs were identified in this study. ANOVAs were employed as a way of determining significant differences between groups with regard to the factors that were identified. The finding of the study revealed that, the level of employee involvement in cost management activities is relatively weak at Namibia Airports Company despite a higher frequency of using the CMCSs. There is a significant effect on financial performance of the organisation as a result of employing CMCSs. The significant impacts of CMCSs on the organisational performance of the Namibia Airports Company include opportunities for improving financial performance management, efficiency in service delivery, and strategic decisions.
- Full Text:
- Date Issued: 2018
Implementing an activity-based costing model
- Authors: Cohen, Howard
- Date: 2004
- Subjects: Activity-based costing , Managerial accounting
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:8970 , http://hdl.handle.net/10948/240 , Activity-based costing , Managerial accounting
- Description: Activity-based costing (ABC) is a forward-looking product costing method. Unlike traditional volume-based approaches, which are historically oriented, ABC concepts guide managers in seeking the best strategies to pursue in the future. This product costing method can be a valuable tool in planning and managing costs not only in the manufacturing area, but also in all aspects of business operations, from product design to distribution. Although its main advantage is its ability to provide more realistic product cost information for financial reporting purposes, use of ABC can lead to a better understanding of the strategic linkages existing between the various cost areas in the organisation. It enables managers to have a holistic view of cost management. ABC was developed to better understand, manage and control the overheads. The brief fundamental of ABC is: Products consume activities, activities consume resources, and resources consume costs. Based upon this fundamental principle, ABC can trace the cost from resources to activities that are consumed by product manufacturing processes as well as from activities to products. ABC investigates the transactions that trigger cost instead of concentrating solely on measures of physical volume or a certain amount of labour hours. Compared to the traditional costing systems, ABC can not only answer how much product cost is but also tell executives the factors triggering costs and the way to manage costs. ABC helps managers make better decisions about product design, pricing, marketing, and mix and encourages continual improvement. Unlike the traditional method, instead of using the single pre-determined overhead rate to absorb the indirect cost to products, ABC uses actual incurred cost to v determine the product cost. By tracing the absorption process of indirect cost, ABC would provide more information to management and help it find better ways to manage costs. However, the cost drivers used in ABC are constants but the cost driver rates are continually changing. ABC still uses predetermined cost drivers so it has the same fundamental problem as the traditional methods for estimating.
- Full Text:
- Date Issued: 2004
- Authors: Cohen, Howard
- Date: 2004
- Subjects: Activity-based costing , Managerial accounting
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:8970 , http://hdl.handle.net/10948/240 , Activity-based costing , Managerial accounting
- Description: Activity-based costing (ABC) is a forward-looking product costing method. Unlike traditional volume-based approaches, which are historically oriented, ABC concepts guide managers in seeking the best strategies to pursue in the future. This product costing method can be a valuable tool in planning and managing costs not only in the manufacturing area, but also in all aspects of business operations, from product design to distribution. Although its main advantage is its ability to provide more realistic product cost information for financial reporting purposes, use of ABC can lead to a better understanding of the strategic linkages existing between the various cost areas in the organisation. It enables managers to have a holistic view of cost management. ABC was developed to better understand, manage and control the overheads. The brief fundamental of ABC is: Products consume activities, activities consume resources, and resources consume costs. Based upon this fundamental principle, ABC can trace the cost from resources to activities that are consumed by product manufacturing processes as well as from activities to products. ABC investigates the transactions that trigger cost instead of concentrating solely on measures of physical volume or a certain amount of labour hours. Compared to the traditional costing systems, ABC can not only answer how much product cost is but also tell executives the factors triggering costs and the way to manage costs. ABC helps managers make better decisions about product design, pricing, marketing, and mix and encourages continual improvement. Unlike the traditional method, instead of using the single pre-determined overhead rate to absorb the indirect cost to products, ABC uses actual incurred cost to v determine the product cost. By tracing the absorption process of indirect cost, ABC would provide more information to management and help it find better ways to manage costs. However, the cost drivers used in ABC are constants but the cost driver rates are continually changing. ABC still uses predetermined cost drivers so it has the same fundamental problem as the traditional methods for estimating.
- Full Text:
- Date Issued: 2004
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