Management Accounting Practices among Vietnamese Small and Medium Enterprises

Abstract

This paper investigated the level of management accounting application in Vietnamese enterprises in relation to the management functions of planning, controlling, assessing and decision making. Both qualitative and quantitative research methods were used. Qualitative research was conducted with 23 directors and chief accountants. Quantitative research was conducted by sending questionnaires to 120 enterprises. The results showed that 100 percent of Vietnamese enterprises have been applying management accounting. The level and content of management accounting applications in enterprises varied by size, length of business operation and business sector. Small companies often applied conventional management accounting techniques while large ones used contemporary management accounting techniques such as activity-based costing, activity-based budgeting, analysis for decision making, target costing and strategic planning. The research provides an overview of the reality, effects of management accounting on enterprises, helping enterprises understand management accounting and ways to use it effectively in the future.