Managerial Accounting practices adopted by brazilian subsidiaries of multinational companies

Abstract

The present research has as its object of study the practices of Managerial Accounting in the context of its effective receptivity and application by companies. A bibliographic research is made, encompassing costing methods, methods of cost predetermination, elaboration as well as use of budget plans and a cost-volume-profit relationship analysis. The research elaborates arguments as to the contribution of such practices to the increase in business management effectiveness. Besides the so called traditional practices, the present work also reviews more newly developed practices, especially Activity Based Costing (ABC) and the Targeting Costing, which are believed by some researchers to be more adequate to the current business operational environment. Broadening its field of investigation, the present study is based on research done in forty-nine Brazilian subsidiaries of multinational enterprises having as its objective to identify the management of accounting practices nowadays used by these companies and to verify the recognition level that such companies dedicate to the practical validity of the recommended new procedures. The quantitative and qualitative analysis and interpretation of the data collected were made based on traditional practices, as well as on those recommended by current literature, and are substantiated in a body of knowledge which hopefully contributes objectively and effectively to a better understanding of accounting science in the field of business management.

Key words: Cost Accounting, Management Accounting, information systems, decision making.