The usage of management accounting tools by small and medium enterprises in Cape Metropole, South Africa

Abstract

This study sought to determine the extent to which Small and Medium Enterprises (SMEs) in the Cape Metropole use Management Accounting Tools (MATs), namely budgeting tools, Performance Measurement Tools (PMTs) and pricing tools, which are considered critical for the survival of these entities. Specifically, the study aimed to determine the types of MATs used by SMEs; the purpose for which MATs are used by SMEs; the perception of SMEs regarding the effectiveness of these tools and the possible factors that could inhibit SMEs from using the tools. The study was motivated by a lack of research on the usage of MATs by SMEs. Data was collected by means of a questionnaire that comprised closed-ended questions.