MANAGEMENT ACCOUNTING PRACTICES IN PRIVATE UNIVERSITIES

Abstract

The main aim of this study is to analyze management accounting techniques used in private universities in Ghana specifically in Ashanti Region. The main focus of management accounting is to improve the performance and profitability and assist managers by providing relevant financial and non-financial information for making decisions to private universities. Specifically, the study looked at evaluating factors that affect management accounting practices in private Universities, examining the challenges that confront private Universities in management accounting practices and the effect of management accounting practices on financial performance of private Universities. The research focused on the total private universities in Ashanti region which in all in nine (9) and got a sample size of five (5) private Universities. The study used quantitative method to collect data and used SPSS to analyze their findings and bring out recommendations. It was noted that Private Universities take budgeting seriously and the use of budgeting increases their financial performance. Private Universities noted us that incurring more cost in their administration helps in improving their financial performance. The study found that more cash improves the financial performance of private Universities because they use cash in providing services and doing necessary payments which aids in their performance. The study further found that modern management accounting techniques enable the private Universities to improve the innovative capacity of the private university and flexibility so that it can continually change and improve performance. Management of private Universities should participate actively in the implementation of management accounting systems as this would enhance the extent of management accounting practice. Private Universities should continually review their management accounting practices to assess their effectiveness and address any known inefficiency as they iv have direct bearings on the performance and also employ experts to help them in this regard.