A Study on Cost and Management Accounting Mechanism as Practiced in Manufacturing Industry of Bangladesh

The study is expected to explore the practice of cost and management accounting mechanism of manufacturing industry in Bangladesh. In doing so, a total of 66 manufacturing organizations has been surveyed with a structured questionnaire by using 5 point Likert Scale measurement. Findings reveal that out of forty nine cost and management accounting mechanisms, budgetary control is the most frequently used mechanism by the sample. Simultaneously, some new mechanism of cost and management accounting like Kaizen costing, six sigma and value engineering are not well informed by the sample. The study has also recognized 12 components that has explained 79.862 percent of the total variation in the application level of cost and management accounting mechanisms. The findings are expected to contribute to develop the perception about the practice of cost and management accounting. The modern cost and management accounting practices enable the business organization to improve the innovative capacity of the organization and flexibility so that it can continually change and improve performance.