Abstract
Companies today operate in a dynamic and competitive environment. Production technology is changing significantly, customers are becoming more demanding, competition is growing stronger, and product life cycle is getting shorter. In order to face a competition and to succeed in modern business environment, companies require the application of the new costing methods and efficient cost management. The aim of this paper is to investigate the structure of product costs and the management accounting techniques that are used for cost calculation, inventory valuation, and cost management in Croatian manufacturing companies. The data was collected through a structured questionnaire. Research sample consists of 700 Croatian manufacturing companies. Collected data were analyzed by using methods of descriptive statistics and methods of inferential statistics. Research results showed that direct product costs dominate in total product costs in many Croatian manufacturing companies, while a share of indirect product costs is relatively low. Furthermore, the research results showed that Croatian manufacturing companies mostly apply traditional management accounting techniques for cost management and traditional costing methods. Modern management accounting techniques for strategic cost management are applied in a small number of Croatian manufacturing companies, usually in those where the level of digitalization is very high and where automated manufacturing technology is used.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Angelakis, G., Theriou, N., & Floropoulos, I. (2010). Adoption and benefits of management accounting practices: Evidence from Greece and Finland. Advances in Accounting, incorporating Advances in International Accounting, 26(1), 87–96.
Armitage, H. M., Webb, A., & Glynn, J. (2016). The use of management accounting techniques by small and medium-sized enterprises: A field study of Canadian and Australian practice. Accounting Perspectives, 15(1), 31–69.
Ashfaq, K., Younas, S., Usman, M., & Hanif, Z. (2014). Traditional vs. contemporary management accounting practices and its role and usage across business life cycle stages: Evidence from Pakistani financial sector. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(4), 104–125.
Barfield, J. T., Raiborn, C. A., & Kinney, M. R. (2001). Cost accounting: Traditions and innovations (4th ed.). South Western.
Baumers, M., Dickens, P., Tuck, C., & Hague, R. (2016). The cost of additive manufacturing: Machine productivity, economies of scale and technology-push. Technological Forecasting and Social Change, 102, 193–201.
Brierley, J. A., Cowton, C. J., & Drury, C. (2001). Research into product costing practice: A European perspective. European Accounting Review, 10(2), 215–256.
Cadez, S., & Guilding, C. (2008). An exploratory investigation of an integrated contingency model of strategic management accounting. Accounting Organizations and Society, 33(7–8), 836–863.
Cescon, F., Costantini, A., & Grassetti, L. (2019). Strategic choices and strategic management accounting in large manufacturing firms. Journal of Management and Governance, 23, 605–636.
Chenhall, H. R., & Langfield-Smith, K. (1998). Adoption and benefits of management accounting practices: An Australian study. Management Accounting Research, 9(1), 1–19.
Diefenbach, U., Wald, A., & Gleich, R. (2018). Between cost and benefit: Investigating effects of cost management control systems on cost efficiency and organisational performance. Journal of Management Control, 29, 63–89.
Dmitrović-Šaponja, L., & Suljović, E. (2017). Strategic management accounting in the republic of Serbia. Economic Research-Ekonomska istraživanja, 30(1), 1829–1839.
Dobroszek, J., Zarzycka, E., Almasan, A., & Circa, C. (2019). Managers’ perception of the management accounting information system in transition countries. Economic Research-Ekonomska istraživanja, 32(1), 2798–2817.
Drury, C. (2008). Management and cost accounting (7th ed.). South-Western Cengage Learning.
Drury, C. (2015). Management and cost accounting (9th ed.). Cengage Learning EMEA.
Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2012). Managerial accounting (14th ed.). McGraw-Hill Irwin.
Horngren, C. T., Datar, S. M., & Rajan, M. (2012). Cost accounting: A managerial emphasis. Prentice Hall Pearson.
Ittner, C. D., & Larcker, D. F. (2001). Assessing empirical research in managerial accounting: A value based management perspective. Journal of Accounting and Economics, 32(1–3), 349–410.
Kinney, M. R., & Raiborn, C. A. (2013). Cost accounting – Foundations and evolutions (9th ed.). South-Western Cengage Learning.
Lääts, K., & Haldma, T. (2012). Changes in the scope of management accounting systems in the dynamic economic context. Economics and Management, 17(2), 441–447.
Law on Accounting. (2015). [online] Available at: <https://narodne-novine.nn.hr/clanci/sluzbeni/2015_07_78_1493.html> [Accessed 24 June 2021].
Lebas, M. (1994). Managerial accounting in France: Overview of past tradition and current practice. European Accounting Review, 3(3), 471–488.
Lucey, T. (2003). Management accounting (5th ed.). Thomson Learning.
Lukka, K., & Granlund, M. (1996). Cost accounting in Finland: Current practice and trends of development. European Accounting Review, 5(1), 1–28.
National Classification of Activities. (2007). [online] Available at: <https://narodne-novine.nn.hr/clanci/sluzbeni/2007_06_58_1870.html> [Accessed 24 June 2021].
Nixon, B., & Burns, J. (2012). The paradox of strategic management accounting. Management Accounting Research, 23(4), 229–244.
Novák, P., & Popesko, B. (2014). Cost variability and cost behaviour in manufacturing enterprises. Economics and Sociology, 7(4), 89–103.
Perčević, H. (2006). Metode obračuna troškova u proizvodnom sektoru Republike Hrvatske [the methods of cost accounting in the Croatian production sector]. Ekonomski pregled, 57(9–10), 647–667.
Petera, P., & Šoljaková, L. (2020). Use of strategic management accounting techniques by companies in the Czech Republic. Economic Research-Ekonomska istraživanja, 33(1), 46–67.
Popesko, B., & Novák, P. (2011). Changes in the enterprise cost structure – Czech perspective. In Finance and the performance of firms in science, education and practice (pp. 375–380). Tomas Bata University in Zlin.
Ramljak, B., & Rogošić, A. (2012). Strategic management accounting practices in Croatia. The Journal of International Management Studies, 7(2), 93–100.
Registry of annual financial statements. [online] Available at: <http://rgfi.fina.hr/IzvjestajiRGFI.web/main/home.jsp> [Accessed 27 June 2021].
Seal, W., Rohde, C., Garrison, R. H., & Noreen, E. W. (2015). Management accounting (5th ed.). McGraw-Hill Education.
Tabitha, N., & Ogungbade, O. I. (2016). Cost accounting techniques adopted by manufacturing and service industry within the last decade. International Journal of Advances in Management and Economics, 5(1), 48–61.
Weller, C., Kleer, R., & Piller, F. T. (2015). Economic implications of 3D printing: Market structure models in light of additive manufacturing revisited. International Journal of Production Economics, 164, 43–56.
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2012). Managerial accounting (6th ed.). John Wiley & Sons, Inc.
Wouters, M., Morales, S., Grollmuss, S., & Scheer, M. (2016). Methods for cost management during product development: A review and comparison of different literatures. Advances in Management Accounting, 26, 139–274.
Yalcin, S. (2012). Adoption and benefits of management accounting practices: An inter-country comparison. Accounting in Europe, 9(1), 95–110.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Hladika, M. (2022). Use of Management Accounting Techniques in Croatian Manufacturing Companies. In: Bilgin, M.H., Danis, H., Demir, E., Bodolica, V. (eds) Eurasian Business and Economics Perspectives. Eurasian Studies in Business and Economics, vol 23. Springer, Cham. https://doi.org/10.1007/978-3-031-14395-3_10
Download citation
DOI: https://doi.org/10.1007/978-3-031-14395-3_10
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-14394-6
Online ISBN: 978-3-031-14395-3
eBook Packages: Economics and FinanceEconomics and Finance (R0)