Document Type


Publication Date

Fall 2-2018


In present times, complexity in the business environment, and advanced technology has intensified the challenges for more management accounting information to meet global competition. Therefore, contemporary management

accounting practices (CMAPs), which focus on financial and non-financial information, have emerged to support

managers’ decision-making processes. This research is aimed at examining the adoption, importance and barriers to

the implementation of contemporary management accounting practices. To achieve its objectives, the research

conducted a survey and collected data on forty MAPs. The methodology of the study relied on factor analysis to

identify and group different variables into the main factors that contribute to MAPs. In terms of MAPs adoption, the

results indicated 9 factors: fundamental traditional management accounting practices (TMAPs); control; world class

manufacture (WCM); performance evaluation non-financial; budgeting for planning cash flows; contemporary

decision support; traditional decision support; planning and capital budget practice. In terms of importance there are

10 factors; benchmarking practices; costing and decision support; fundamental TMAPs; traditional performance

evaluation; control; contemporary performance evaluation; budget for planning day to day; WCM –MRP practice;

product life cycle practice and performance evaluation – customer satisfaction. The main conclusion was that the

relative adoption of TMAPs is higher than CMAPs. However, Egyptian companies are realizing the importance of

large number of CMAPs. Moreover, the research revealed that the key barriers limiting the implementation of

CMAPs were the length of time it took to change the societal values and practices, the high degree of uncertainty

avoidance and the high cost implementing these advanced practices.

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