The Cost and Information Management Effect in SMEs: An Empirical Analysis

Simon Grima, Gani Asllani, Jonathan Spiteri, Nikson Daka
European Research Studies Journal, Volume XXII, Issue 3, 360-369, 2019
DOI: 10.35808/ersj/1477

Abstract:

Purpose: The purpose of the study is to analyse costs and information management as determinants of the final price strategy, the cost components and to identify the impact of factors affecting the performance of SMEs. Design/Methodology/Approach: The methodology is based on the comparative analysis of data using both primary and secondary sources. The data collected are analyzed using the regression method. The results show that cost and information management contributes to determinate the company’s price of goods and services. Findings: The research for SMEs shows that company performance depends on managerial decision taking into account cost management and accounting information. Decision-making in this context is determined by making a choice between alternatives and it is based on objectives. Cost and information management has a key goal, to organize costs by creating products and services, so company managers can use cost information as a guide to setting sales prices and inventory estimates by determining profits. Practical Implications: This work will be useful to the people in the academic field, readers, and knowledge seekers and will be of great relevance in the area of managerial decisions and performance appraisal. Originality/Value: It contributes to the knowledge of financial managers and other accountants as it will assist them in effective planning and control.


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