Abstract

This study explores the impact of cost accounting techniques on the financial performance of Small and Medium-sized Enterprises (SMEs) in Buea, Cameroon. Cost accounting plays a crucial role in helping SMEs effectively manage their financial resources, control expenses, and make informed business decisions. The research utilizes a mixed-methods approach, combining quantitative analysis of financial data with qualitative insights from interviews and surveys conducted with SME owners and managers. By examining the adoption and application of cost accounting techniques, the study aims to provide valuable insights into how these practices influence key financial performance indicators, such as profitability, cost efficiency, and overall business sustainability.

Keywords: Impact, Cost Accounting Techniques, Financial Performance, Small and Medium-sized Enterprises, Buea, Cameroon, Business Decision-Making, Cost Efficiency, Profitability, Financial Management, Cost Control.

1.6 Significance of Study

The effect of Cost Accounting Techniques on the financial performance of Small and Medium Enterprises development has been an area of intense research both in practice and academia. This work is to prove helpful to the existing and potential entrepreneur of SMEs since this study lends assistance in the strategic effect of sources of finance in the performance of a business in order to plan ahead. The research work could also serve as a source of future reference to future researchers who may find it helpful in carrying out a research work of similar nature or related topic.
The finding of the study will try to provide an insight about the overall image of the costing system; it suggests some possible recommendations for further betterment of the system which may help the organization in enhancing its costing practice. Subsequently the attainment of organizational goals will be greatly improved.
In addition, the benefit of sharing information among researchers is another reason for the study. Thus, the information provided in the study will be useful to researchers who might want to undertake further research into the area of cost accounting practice.
The study would also provide uniqueness of small and medium scale businesses which call for careful consideration in the design of accounting systems. Small and medium scale enterprises are a vast majority of businesses found in variety of primary and intermediate products of the economy

Finally, this study also serves as a partial fulfillment of the requirements for the award of a Bachelor of Science (B.Sc.) Degree in Accounting in the prestigious University of Buea
1.7 Definition of Terms

Cost: In business and accounting, cost refers to the monetary value that has been spent by a company in order to produce something (goods and services) Cost does not include mark-up on profit.
Cost Accounting: The process of collecting, analyzing, summarizing and evaluating various alternative courses of action. Its goal is to advise the management on the most appropriate course of action based on the cost efficiency and capability. Cost accounting also referred to as managerial or management accounting,
Small and medium-size enterprises: These are enterprises marked by a limited number of employees and a limited flow of finance and material (non-subsidiary independent firms) the number of employees employed varies across countries. In Cameroon, small enterprises have a maximum of 50 (6 – 50) employees while medium size has 100 (51 – 100) employees.
Financial Performance: This measures the results of a firms policies and operations in monetary terms.
1.8 Organization of the Study

The study is being organized in five chapters. The first chapter deals with the introductory part which covers the background of the study, background of the organization, statement the problem, research question, objective of the study, significance, scope, limitation & organization of the paper. The second chapter presents a review of the related literatures. The third chapter deals with the research design and methodology. The forth chapter discuss about finding and analysis of the data. The last chapter five presents summary, conclusion and discuss the recommendations drawn from findings of the data and literature review.