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Theses and dissertations (Accounting and Informatics)

Permanent URI for this collectionhttp://ir-dev.dut.ac.za/handle/10321/4

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Start date: 2021Subject: search.filters.subject.Managerial accounting

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Now showing 1 - 4 of 4
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    Cost control and operational performance at eThekwini human settlement unit
    (2024) Jwara, Msawenkosi Cedric; Marimuthu, Ferina; Nzuza, Zwelihle Wiseman
    Government municipalities have encountered notable challenges due to their inability to undergo necessary revitalisation and keep pace with the ongoing modernisation of the contemporary business environment. Within South African municipalities, prevailing cost accounting methods exhibit a lack of alignment with contemporary advancements in cost management. This misalignment has resulted in delays in delivering vital community services due to an insufficient grasp of strategic resource cost control. Consequently, there arises a distinct imperative to undertake an inquiry into the practical cost control techniques employed, the determinative factors influencing cost controls and the resultant effectiveness of such controls in improving operational performance of the eThekwini Human Settlement Unit (HSU). This study aims to identify the role of cost controls in improving the eThekwini HSU's operational performance. Specific objectives include investigating cost control techniques, factors influencing cost controls, and their effectiveness. Employing a quantitative approach, this study used a questionnaire instrument with closed-ended questions to gather data from 44 purposefully selected HSU employees. Data analysis involved descriptive and inferential statistics using SPSS (version 27®), ensuring reliability and validity. Ethical considerations were observed throughout the research process. The investigation revealed that the eThekwini HSU implements an array of strategies encompassing budgetary frameworks, audit techniques, cost estimation and cost analysis tools in its pursuit of cost containment. Conversely, negative factors of cost control were identified, prominently including challenges rooted in deficient communication, a lack of administrative accountability and socio-political influences. In the context of perceptions, a notable agreement emerged amongst the surveyed personnel, showing the effectiveness of established cost control mechanisms. Based on the findings derived from this study, it is recommended that the eThekwini HSU take proactive measures to address the identified challenges in cost control. This research contributes to the adoption of modern cost control techniques in the eThekwini HSU and, by extension, other municipalities. Improved cost management processes enhance service delivery and benefit citizens by ensuring efficient resource allocation.
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    Investigating the contemporary management accounting practices used by small enterprises in Ntuzuma Township, Durban
    (2024) Zulu, Londiwe Thandazi; Nzuza, Zwelihle Wiseman
    Despite the implementation of various managerial strategies, Small Enterprises (SEs) in South Africa continue to confront challenges in effectively managing their business, with cost management remaining a persistent struggle. The sustainability of SEs in a growing economy like South Africa is critical because of their significant contribution to the country’s economic growth and job creation. Nevertheless, the high failure rate of SEs in the country has become the primarily concern for government. The adoption of management accounting practices (MAPs) presents potential solutions by providing techniques for efficient cost control and informed decision-making. Therefore, the current study seeks to identify the CMAPs used by SEs; examine their knowledge about these practices, investigate the perceived usefulness of CMAPs in Ntuzuma Township, and analyse the correlation between biographic data and CMAPs. To fulfil these objectives, a quantitative cross-sectional design was employed. The data used in the study was collected utilising a questionnaire instrument and involving 180 respondents. The research framework was guided by contingency theory, and data analysis was conducted using regression, tables, and standard deviation, which are derived from the SPSS software version 25. Despite the majority of respondents indicating limited extensive use of CMAPs, a significant portion recognised the benefits of CMAPs in making well-informed decisions relating to the management of costs. Notably, the sales budget and cash budget emerged as the most commonly employed budgeting practices. The study also brought to light that managers possessed varying levels of knowledge regarding CMAPs, with most of this knowledge acquired through previous work experiences. Biographical factors exhibited a detrimental influence on costing and budgeting practices, as evidenced by weak correlations and the absence of statistical significance. The study's recommendations emphasise the necessity for SEs staff training, CMAPs applications of tools programmes, knowledge sharing and further research and evaluation.
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    The adoption of target costing as a contemporary management accounting technique in a public higher education institution : a case study of Durban University of Technology
    (2022-05-14) Thango, Thobelani Sabelo; Marimuthu, Ferina; Nzuza, Zwelihle Wiseman
    There is a growing need for public higher education institutions (HEIs) to opt for all cost management tools following the government’s shortfalls in the budget allocation for public HEIs. The focus should be on the suitable pricing methods that will consider the students’ perception of the value of education and give fees that are reasonable and accepted by students, while ensuring that the institution meets target returns. The biggest concern is that fees are based on the cost-based pricing model. Cost-based pricing always results in higher prices, where the accurate costs are unknown, despite the strategy used to implement it. Furthermore, fees are based on historic cost models, not on a continuously reworked costing model. Following cuts in the budget allocation to HEIs, the institutions have increased fees rapidly to remain sustainable. A fee calculated on uncertain historic costs while government support falls results in a rapid increase in fees. Target costing can assist in cutting down on unnecessary costs and ensure acceptable fees for students. Target costing is a known cost management tool that assists in ensuring costs management and keeping fees low. Despite the cuts in government spending on HEIs, adoption of target costing will result in reasonable costs to keep the fees low. Considering the limited empirical studies conducted on the adoption of target costing in South African public HEIs, study's main aim is to investigate the factors that influence the adoption of target costing in public HEIs, using the Durban University of Technology (DUT) as the case study. Therefore, this study will massively contribute to research pool on the adoption of target costing in HEIs. The study used the quantitative research method with a sample of 52 Heads of Departments and 15 finance staff. The research instrument employed was a questionnaire, which was dominated by close-ended questions. The study was guided by the positivist philosophy where data analysis was done using the Statistical Package for Social Science (SPSS version 27 ®), in which descriptive and inferential statistical analysis were undertaken. The results have shown that DUT is using the full cost-plus method to account for fees. The costs are allocated using the traditional absorption method. The results showed that target costing had not been fully used but exists in selected areas of the university. Findings further reveal that costs to fees are subject to historic judgement, implying that costs to fees are not reworked annually. While the fees increase, many respondents perceive the current pricing methods to be the best for the university and that the cost-plus pricing method is most appropriate to ensure it’s the university’s sustainability. Findings revealed that the variables which influenced the adoption of target costing at the DUT included: size of DUT, management style and staff inclusion, information system and technological advancement, vertical differentiation and centralisation, formal support to accounting for adoption of target costing, resource adequacy, intensity of competition, and government regulations. The respondents have disagreed that sufficiency in the expertise of target costing has an influence in the partial adoption of target costing at the DUT. The students’ perception on the value of education is also not the reason that the concept of target costing exists in some parts of the DUT. Overall, the results help to understand the current pricing method used at DUT. It has further brought a clear indication of the factors that influence the adoption of target costing and whether the elements of target costing exist at the university.
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    Financial preparedness of heads of departments in the Faculty of health Sciences at the Durban University of Technology KwaZulu-Natal, South Africa
    (2021-12-31) Allison, Wendy; Olarewaju, Odunayo Magret
    This study investigated the financial knowledge and skill levels of the Heads of Departments in the Faculty of Health Sciences (FoHS) at the Durban University of Technology (DUT). These department heads in the FoHS receive no formal training in financial management, yet are required to manage budgets and ensure that their department is financially viable. The study established the financial management proficiency of the Heads of Departments with a view to offering ways in which the financial management of the department heads could be improved. The data generated used a combination of open-ended and closed-ended questions, comprising of both qualitative and quantitative methodology, which followed a pragmatist paradigm. A total of 22 participants, all of whom served as the Heads of Departments between 2013 and 2020 were included in the sample. The researcher used SPSS Version 26® to analyse the quantitative data, and NVIVO to analyse the qualitative data. The identities of all the Heads of Departments in this study are withheld to maintain anonymity. The findings indicated that the financial management skills of these department heads are severely lacking, resulting in departments with compromised financial management. Added to this, universities can no longer rely on 1st or 2nd stream income alone, but departments need to create and manage 3rd stream income. None of this, especially the management of 3rd stream income, is possible without the relevant financial management training. These Heads of Departments require training in the creation of their budgets, as well as in the implementation and control thereof. The department heads agreed that they do not have these skills, and expressed a desire for financial management training.