Factors affecting the application of management accounting of revenue, costs, and business results

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Abstract

The effective management accounting of revenue, costs, and business results holds significant importance in enterprise management accounting, particularly for businesses situated in countries with fragile economies such as Vietnam. However, the current situation of applying accounting of revenue, costs, and business results at enterprises, in general, and electricity enterprises in Northern Vietnam, in particular, still has many limitations. Therefore, this article aims to promote the level of effective management accounting for revenue, costs, and business results. A quantitative study was undertaken, involving the distribution of questionnaires to 57 companies within the electricity sector in Northern Vietnam. The collected data was then analyzed using Excel and Statistical Package for the Social Sciences (SPSS) 22 software. The findings of the study reveal that there are six elements influencing the management accounting of revenue, costs, and business results in electricity enterprises, including 1) the amount of financial accounting information provided; 2) enterprise size; 3) corporate culture; 4) qualifications/quality of accounting staffs; 5) level of awareness of business managers, and 6) availability of information technology. Therefore, the article proposes a recommended solution to ameliorate the management accounting of revenue, costs, and business results in electricity enterprises in Vietnam.

Keywords: Management Accounting, Application of Management Accounting, Management Accounting of Revenue, Cost, Business Results

Authors’ individual contribution: Conceptualization — H.H.D. and N.T.T.; Methodology — H.H.D. and C.H.N.; Software — H.H.D. and Q.N.P.; Validation — H.H.D., N.T.T., Q.N.P., and C.H.N.; Formal Analysis — H.H.D. and C.H.N.; Investigation — N.T.T., Q.N.P., and C.H.N.; Resources — H.H.D., N.T.T., Q.N.P., and C.H.N.; Data Curation — H.H.D. and N.T.T.; Writing — Original Draft — H.H.D. and N.T.T.; Writing — Review & Editing — H.H.D., N.T.T., Q.N.P., and C.H.N.; Visualization — H.H.D., N.T.T., Q.N.P., and C.H.N.; Supervision — H.H.D., Q.N.P., and N.T.T.; Project Administration — H.H.D.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M41, M49

Received: 26.07.2023
Accepted: 05.02.2024
Published online: 07.02.2024

How to cite this paper: Dau, H. H., Tran, N. T., Pham, Q. N., & Nguyen, C. H. (2024). Factors affecting the application of management accounting of revenue, costs, and business results. Corporate & Business Strategy Review, 5(1), 216–225. https://doi.org/10.22495/cbsrv5i1art20