Application of Management Accounting Methods and Viability of Small and Medium Enterprises in Nigeria

  • Sani Alfred Ilemona Faculty of Management Sciences, Accounting Department Federal University Kashere, Gombe State Nigeria.
Keywords: Management, Accounting, Methods


The viability of Small and Medium Enterprises (SMEs) is of interest to both government and operators of the enterprises in the Nigerian economy. The viable operation of the businesses is a function of both internal (endogenous) and external (exogenous) factors. In as much as enterprises depend on government intervention in the area of provision of critical infrastructure for their operation and viability, the application of internal management accounting methods is also sacrosanct for the viability of the enterprises.  Unfortunately, the businesses, in the economy are facing viability challenges not only because of a lack of critical infrastructure but due to the failure of the operators of these enterprises to deploy internal managerial accounting methods for the viability of the businesses. Research/studies on the impact/influence of the methods on the viability of the enterprises could have been one of the ways of bringing enlightenment to SME operators in the country on the impact of managerial accounting methods on the viability of the businesses but none. Previous studies on SME operations are on the impact of external factors on the profitability of the businesses.  Therefore, this study aims to examine the impact of the application of management accounting methods on the viability of SMEs in Nigeria. A survey research design approach was employed to achieve the stated objective. Data for the study were collected primarily from randomly selected 240 respondents made of up owners and managers of 240 SMEs across the six geopolitical zones of Nigeria. The analysis of the data was done using correlation Analysis of Variance (ANOVA) and multiple regressions. Results showed that all the explanatory variables of the study: Capital Budgeting (CB), Inventory Costing (IC), Total Quality Management (TQM), Trend Forecasting Analysis (TFA), Cash flow Analysis (CfA), and Constraints Analysis (CA) have a positive and significant impact on Business Viability (BV) as indicated by R2 value at 0.4862. The study recommended that SME operators in Nigeria should in addition to government intervention for the provision of critical infrastructure deploy internal managerial accounting methods in their operation and viability.


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How to Cite
Ilemona, S. A. (2024). Application of Management Accounting Methods and Viability of Small and Medium Enterprises in Nigeria. Global Journal of Accounting, 9(2), 1-9. Retrieved from