THE IMPACT OF MANAGEMENT ACCOUNTING TECHNIQUE ON PERFORMANCE (CASE STUDY OF SOME SELECTED MANUFACTURING COMPANY)

This study investigates the impact of management accounting techniques on the performance of selected Nigerian manufacturing companies, with a focus on Dangote Cement Plc, Nestlé Nigeria Plc, and Flour Mills of Nigeria Plc. The motivation for the research arises from the increasing need for manufacturing firms to improve efficiency, maintain profitability, and strengthen competitiveness in a highly volatile economic environment. Specifically, the study examined the extent to which the selected companies adopt modern management accounting techniques and how such techniques influence key financial performance indicators. A descriptive research design was employed, relying solely on secondary data obtained from the published annual reports of the firms for the period 2022–2023. Performance was measured using three widely recognised indicators: Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). The results revealed significant variations among the companies. Nestlé Nigeria demonstrated the strongest stability and asset efficiency, reflected in improving ROA and steady NPM, which can be attributed to its application of advanced management accounting techniques such as activity-based costing and robust budgeting systems. Dangote Cement recorded the highest profit in absolute terms and strong equity returns, but its margins declined due to rising production and financing costs, highlighting the limitations of traditional techniques in capital-intensive industries. Flour Mills of Nigeria showed the weakest performance, with near erosion of net profit margins, pointing to insufficient cost management practices and limited integration of advanced techniques. The study concludes that management accounting techniques positively influence financial performance, but the extent of impact depends on the depth and sophistication of their application. It recommends that Nigerian manufacturing companies expand their adoption of advanced tools, invest in capacity building, and integrate management accounting into strategic decision-making to strengthen resilience and competitiveness.