Developing a Model to Enhance the Efficiency and Effectiveness of Management Accounting Systems in Manufacturing Companies

Abstract

This study aims to develop a comprehensive model to improve the efficiency and effectiveness of management accounting systems in manufacturing companies through the identification of key dimensions and components affecting their performance. The research employed a qualitative design using thematic analysis. Data were collected through semi-structured interviews with 15 experts in management accounting, selected through purposive sampling until theoretical saturation was achieved. The interviews were transcribed and analyzed using MAXQDA software. Open, axial, and selective coding were conducted to extract themes and subthemes, resulting in the identification of six main dimensions and eighteen components forming the conceptual model for enhancing the efficiency and effectiveness of management accounting systems. Thematic analysis revealed six major dimensions: (1) information and data, (2) management accounting processes, (3) decision support and performance control, (4) technology and innovation, (5) cost management and inventory control, and (6) reporting and performance analysis. Core themes included accurate raw material data, direct labor tracking, production overhead, job-order costing, comprehensive budgeting, break-even analysis, supply chain management, ERP systems, specialized production software, and precise financial reporting. In manufacturing firms, the control of raw materials and overhead costs had the greatest impact on efficiency, whereas in non-manufacturing firms, service cost control, budget allocation, and profitability analysis played the most critical roles. The findings also emphasized that technological integration and advanced accounting software significantly improved data consistency, financial reporting accuracy, and managerial decision-making. The proposed model highlights that integrating modern technologies, emphasizing accurate data analysis, and applying contemporary management accounting techniques lead to higher efficiency, accuracy, and effectiveness in manufacturing systems. This framework strengthens financial reporting, cost control, and strategic decision-making, thereby improving productivity and competitiveness across organizations.