Title: Management Accounting Practices in Malaysian SMEs

This questionnaire has 4 sections.

Questionnaire-Section 1: Profile of the firm

1. Years of operations/business

1-3 years [ ] More than 10 years [ ]

4-10 years [ ]

2. Number of employees

0 to 4 [ ] 51 to 150 [ ]

5 to 10 [ ] More than 150 [ ]

3. Annual sales turnover

Less than RM 250,000 [ ] RM 5.0 to RM 10 million [ ]

RM 250,000 to RM 1.0 million [ ] RM 10 million to RM 24 million [ ]

RM 1.0 to RM 5.0 million [ ] More than RM 25 million [ ]

Section 2: Extend of the use of management accounting practices

Part A: Costing System

4. Do you use a costing system in your firm? (Please tick in the appropriate box)

Yes [ ]
No [ ]
If yes please continue to question number 6 and onwards. If no please proceed to part B
(Question 7).

Please use the following scale for questions 5 and 6. Please circle your answer.

Always Often Sometimes Seldom Never

5 4 3 2 1

5. Please indicate the extent to which the following cost collection systems
Job costing 5 4 3 2 1
Batch costing 5 4 3 2 1
Contract costing 5 4 3 2 1
Process costing 5 4 3 2 1
 6. Please indicate the extent to which the following costing systems are used in
your firm
Absorption costing 5 4 3 2 1
Variable costing 5 4 3 2 1
Variable and absorption costing 5 4 3 2 1
Activity based costing (ABC) 5 4 3 2 1

Part B: Budgeting system

7. Do you use a budgeting system in your firm? (Please tick in the appropriate box)

Yes [ ]
No [ ]
If yes please continue to question number 8 and onward. If no please proceed to the part C
(question 11)

Please use the following scale for questions number 9 to 11. Please circle your answer.

Always Often Sometimes Seldom Never

5 4 3 2 1

8. Please indicate which budgets are prepared

Sales budget 5 4 3 2 1
Purchasing budget 5 4 3 2 1
Production budget 5 4 3 2 1
Cash flow budget 5 4 3 2 1
Financial position budget 5 4 3 2 1

9. Please indicate the frequency of budget preparation

Monthly budget 5 4 3 2 1
Annual budget 5 4 3 2 1
Continuous/rolling budget 5 4 3 2 1

10. Please indicate the extent to which the following type of budgeting are
employed
Flexible budget 5 4 3 2 1
Incremental budgeting 5 4 3 2 1
Zero-based budgeting 5 4 3 2 1

Part C: Performance evaluation system

11. Do you use a performance evaluation system in your firm? (Please tick in the
appropriate box)

Yes [ ]
No [ ]
If yes pleases continue to question number 12 and onwards. If no please proceed to part D
(question 13.)
Please use the following scale for question number 12. Please circle your answer.

Always Often Sometimes Seldom Never

5 4 3 2 1

12. Please indicate the extent to which the following measures of performance
evaluation are used
Financial measures
Operating income 5 4 3 2 1
Return on investments 5 4 3 2 1
Variance analysis 5 4 3 2 1
Sales growth 5 4 3 2 1
Cash flows 5 4 3 2 1
Non-financial measures
Number of customer complaints 5 4 3 2 1
Survey of customer satisfaction 5 4 3 2 1
Employee turnover 5 4 3 2 1
Absentee rates 5 4 3 2 1

Part D: Decision support system

13. Do you use the decision support system in your firm? (Please tick in the appropriate
box)

Yes [ ]
No [ ]
If yes pleases continue to question number 14 and onwards. If no please proceed to part E
(question 15).

Please use the following scale for question number 14. Please circle your answer.

Always Often Sometimes Seldom Never

5 4 3 2 1

14. Please indicate the extent to which the following analysis are used in your firm
Short-run analysis
Break-even analysis 5 4 3 2 1
Service profitability analysis 5 4 3 2 1
Customer profitability analysis 5 4 3 2 1
Long-run analysis
Payback 5 4 3 2 1
Accounting rate of return 5 4 3 2 1
Net present value 5 4 3 2 1
Internal rate of return 5 4 3 2 1
Part E. Strategic Management Accounting

15. Do you use strategic management accounting in your firm? (Please tivk in the
appropriate box)

Yes [ ]
No [ ]
If yes pleases continue to question number 16 and onwards. If no please proceed to section
3, part A (question 17).

Please use the following scale for question number 16. Please circle your answer.

Always Often Sometimes Seldom Never

5 4 3 2 1

16. To what extent do you employ the following practices.

Strategic costing in determining the 5 4 3 2 1
firm’s strategy
An analysis of the cost incurred in each 5 4 3 2 1
of the activities in the firm’s value
chain?
Taking into account any strategic 5 4 3 2 1
factors when setting price decision?
The systematic collection of data on 5 4 3 2 1
competitor’s price reaction, demand
reaction, and market position?

Section 3: The functions of management accounting

Please use the following scale for question 17. Please circle you answer.

Always Often Sometimes Seldom Never

5 4 3 2 1

17. In your firm, management accounting practices have helped management in;
Planning the future strategies; tactics 5 4 3 2 1
and operations
Controlling current activities 5 4 3 2 1
Measuring and evaluating 5 4 3 2 1
performance
Optimizing the use of firm’s resources 5 4 3 2 1
Reducing subjectivity in the decision 5 4 3 2 1
making process
Improving internal and external 5 4 3 2 1
communication
 Section 4: Performance of the firm

Please use the following scale for question 18. Please circle you answer.

Increased Increased No change Decreased Decreased

significantly significantly
5 4 3 2 1

18. During the last three years, in your opinion have the following
Level of productivity 5 4 3 2 1
Service quality 5 4 3 2 1
Sales growth rate 5 4 3 2 1
Operating profit growth rate 5 4 3 2 1
Cash flow growth rate 5 4 3 2 1

Thank you very much for your participation.