Recession and Covid-19 Impact on Cost Management, Wizz -Air Company, case study (Published)
Recession, an inevitable economic phenomenon that is difficult to predict by the scientists of the time, a pandemic which hits the economic-financial sphere of a certain region or in global form, but as this phenomenon spreads, what are its consequences? What is the right and most effective way today for an entity to successfully meet this challenge? One of the most appropriate forms is the role that cost and management accounting management has in the performance of an entity, as well as the decisions taken by their managers, as it is the latter who manage to “predict” the consequences of this economic downturn and enable its survival.The purpose of the paper is the role that cost and management accounting plays in the recession, specifically the economic downturn caused by the Covid-19 pandemic, by analyzing how managers managed to cope and what decisions were made. The working methodology is descriptive, comparative and analytical based on the secondary data obtained in the study and specifically focused on the airline “Wizzair”, which is part of the transport sector. This sector, being also related to tourism, is among the most affected by the pandemic of recent years. In the following we will present the decisions that were taken by senior managers and based on the analysis of the results we will conclude whether they were appropriate or not.
Keywords: Budgeting, COVID-19 pandemic, Management, Management Accounting, Recession, cost accounting
Improving Management Accounting and Control System (Macs) For Sustainable Innovation and Performance of Manufacturing Companies in Nigeria (Published)
The main purpose of the study was to determine the measures for improving management accounting and control system for innovation and performance of manufacturing companies in Nigerisustainablea. The study was guided by three research questions and two null hypotheses. A descriptive survey research design was adopted for the study. The population for the study was 94 accountants working in 53 purposive sampled from manufacturing companies in South-East States of Nigeria. The instrument used for data collection was a 41 item questionnaire grouped into three sections. The instrument was validated and reliability of the instrument was determined using Cronbach Alpha which yielded 0.87. Out of 94 copies of the questionnaire distributed 92 were properly filled and returned representing 97.87% return rate. Mean, standard deviation and t-test statistics were the statistical tools used. From the result of data analysis, the study identified the indicators for improving management accounting and control system for sustainable innovation and performance of manufacturing companies. The findings of the study showed that there is no significant difference in the mean rating of experienced and less experienced on the identified the indicators. Based on the findings, recommendations were made which include; that the business managers and accountants need to understand the relevance of management accounting and control system in achieving sustainable innovation and performance in the organization and the indicators should be used to improve management accounting and control system for sustainable innovation and performance.
Keywords: Control System, Management Accounting, innovation and manufacturing companies
Recession and Covid-19 Impact on Cost Management; Wizz-Air Company, case study (Published)
Citation: Ejona Duçi, Rovena Troplini and Xhenisa Myshketa (2022) Recession and Covid-19 Impact on Cost Management; Wizz-Air Company, case study, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 3, pp.1-17
Abstract: Recession, an inevitable economic phenomenon that is difficult to be predicted by the scientists of the time, a pandemic which hits the economic-financial sphere of a certain region or in global form, but as this phenomenon spreads, what are its consequences? What is the right and most effective way today for an entity to successfully meet this challenge? One of the most appropriate forms is the role that cost and management accounting management has in the entity performance, as well as the decisions taken by their managers, as it is the latter who manage to “predict” the consequences of this economic downturn and enable its survival.The purpose of the paper is to study the role of cost and management accounting in a recession situation, specifically the economic downturn caused by the Covid-19 pandemic. This is done by analysing how managers managed to cope with such situations and what decisions they have taken. Other important elements which have been studied are variable and fixed cost during recession. The methodology of the study is descriptive, comparative and analytical based on the secondary data obtained from statistical institutions in Albania and especially the focus is on the airline company, “Wizz Air”, which is part of the transport sector. This sector, being related to travelling, is among the most affected by the pandemic situation, because of travel restrictions applied in recent years. A regression analysis is used to see the relation between costs and between employees number and employee cost and how Wizz Air company has reduced some possible costs. According to this analysis appropriate conclusions have been shown.
Keywords: Budgeting, COVID-19 pandemic, Management, Management Accounting, Recession, cost accounting
Analytical Review of the Current and Future Directions of Management Accounting and Control Systems (Published)
Management accounting and control system practices have changed dramatically throughout the last 200 years. All these changes were in response to rapid technological developments, environmental complexity, changes in organizational structures, managerial style, and many different changes that have emerged throughout the years. The main purpose of this paper is to synthesize the relevant literature to identify the current and future directions of management accounting and control systems practices. This was carried out by following an analytical approach, with the intention of reviewing the literature by emphasizing the developments of management accounting and control system practices throughout the twentieth and twenty- first centuries. Consequently, a conceptual framework that portray the current practices of management accounting was developed. As a result, insights for the future directions of this discipline were indicated. The findings of this study showed that the role and scope of management accounting has changed from cost determination, to creation of value to customers. Thus, the different modern techniques that have emerged in response to the needs of contemporary organizations are described. Furthermore, it articulated that today managerial accountants no longer use a historical view of strategy and operations, but look to predict what the market will do in the future. Consequently, it is anticipated that even the role, education, and practices of management accountants will continue to change in the future. Moving from scorekeeping, determining and allocating costs, to developing their predictive, prescriptive analytical skills. Therefore, it is recommended that more emphasis needs to be placed in developing their personal and technical skills, to obtain a better understanding of contemporary management accounting methods for better support of managerial decision- making.
Keywords: 20th century, 21st Century., Management Accounting, analytical techniques, future developments