| dc.description.abstract | In East Africa, particularly in Kenya, the cement industry holds a prominent position both
in production and consumption. Kenya boasts approximately eight cement companies,
three of which are publicly traded on the Nairobi Securities Exchange (NSE): East Africa
Portland Cement Limited, ARM Cement Limited, and Bamburi Cement. The rest of the
businesses are privately held and include Mombasa Cement, Savannah Cement, and
National Cement. The real estate industry's increasing dynamics of supply and demand
have made the competitive scene within the cement manufacturing sector more intense.
As a result, in order to maintain or grow their market share, businesses are concentrating
more and more on assessing their financial positions. Unlike in the past when Kenyan
cement manufacturers were able to make good profits now they are struggling to make a
profit due to the low demand for building materials and the high levels of importation of
cheaper cement from Asian countries. The purpose of this study is to establish the impact
of various costing techniques on the financial planning of the manufacturing sector in
Kenya. The specific research question of the study is therefore; what is the comparative
effect of Activity-Based Costing (ABC), standard costing, and target costing and
marginal costing on the financial performance of the Kenya’s cement manufacturing
industry? The study employs both quantitative and qualitative research methods to ensure
the credibility of the findings. The target population is comprised of 100 middle-level
management personnel. The method of data collection is survey interviews, and the data
collected is of a quantitative nature, analyzed using descriptive statistic and presented in
the form of percentage, Mean Standard Deviation and frequency using SPSS. The
research thus concludes that there is a positive correlation between financial performance
and the various costing techniques namely, the activity based costing, the target costing
and the marginal costing while the standard costing has little or no impact on the
performance. Notably, ABC, target costing, and marginal costing are found to positively
impact performance. In conclusion, standard cost accounting proves valuable for
managers seeking precise budget planning. ABC is particularly beneficial for cement
manufacturing firms, as it facilitates cost reduction, thereby contributing to increased
profits and overall organizational performance. Further research is recommended across
manufacturing firms in different regions and sectors to generalize these findings.
Additionally, exploring the frequency of adoption of management accounting practices in
diverse industries would enrich future studies. | en_US |
