THE IMPORTANCE OF ACCOUNTING IN ENHANCING MANUFACTURING EFFICIENCY
Keywords:
This article delves into the critical functions of accounting in manufacturing and examines how it can optimize processes to enhance overall productivity and profitability.Abstract
Accounting plays a pivotal role in modern manufacturing processes, going beyond mere record-keeping to becoming a strategic enabler for decision-making, cost optimization, and process improvement. In a competitive global market, manufacturers face challenges such as increasing material costs, labor inefficiencies, and market demand fluctuations. Accounting provides the tools and methodologies to address these challenges by offering detailed insights into cost structures, profitability, and resource utilization
References
Kaplan, R. S., & Norton, D. P. (1992). The Balanced Scorecard—Measures That Drive Performance. Harvard Business Review, 70(1), 71–79.
Cooper, R., & Kaplan, R. S. (1988). Measure Costs Right: Make the Right Decisions. Harvard Business Review, 66(5), 96–103.
Drury, C. (2018). Management and Cost Accounting. 10th Edition. Cengage Learning.
Horngren, C. T., Datar, S. M., & Rajan, M. (2015). Cost Accounting: A Managerial Emphasis. 15th Edition. Pearson.
Fullerton, R. R., Kennedy, F. A., & Widener, S. K. (2014). Lean Manufacturing and Firm Performance: The Incremental Contribution of Lean Management Accounting Practices. Journal of Operations Management, 32(7–8), 414–428.
Johnson, H. T., & Kaplan, R. S. (1987). Relevance Lost: The Rise and Fall of Management Accounting. Harvard Business School Press.
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2020). Managerial Accounting: Tools for Business Decision Making. 9th Edition. Wiley.
IFAC (International Federation of Accountants). (2020). Handbook of International Public Sector Accounting Standards. New York: IFAC.
Baines, A., & Langfield-Smith, K. (2003). Antecedents to Management Accounting Change: A Structural Equation Approach. Accounting, Organizations and Society, 28(7-8), 675–698.
Shields, M. D. (1995). An Empirical Analysis of Firms' Implementation Experiences with Activity-Based Costing. Journal of Management Accounting Research, 7, 148–166.
