1

GREAT ZIMBABWE UNIVERSITY

MUNHUMUTAPA SCHOOL OF COMMERCE

DEPARTMENT OF ACCOUNTING AND INFORMATION SYSTEMS
MASTER OF COMMERCE IN PROFESSIONAL
ACCOUNTING AND CORPORATE GOVERNANCE
LEVEL 2 SEMESTER 1
DISSERTATION PROPOSAL

NAME: NDLALA CLEMENCE

REG NUMBER: M240094
MODULE CODE:
MODULE NARRATION: RESEARCH METHODS IN ACCOUNTING

YEAR: 2025
LECTURER: MRS. C. MUZA
LECTURER’S
COMMENTS………………………………………………………………………………………………………
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………

Clemence Ndlala M240094

 2

RESEARCH PROPOSAL
THE ROLE OF MANAGEMENT ACCOUNTING IN THE DECISION-MAKING
PROCESS. A CASE STUDY OF LEAK-TECH WATERPROOFING AND JOBBING
PVT LTD.

1.0 Introduction
Management Accounting plays a very important role in the decision- making process of
many organisations. This is possible through the provision of relevant financial and non-
financial information that is used to aid the decision- making process. This research proposal
seeks to explore how management accounting influences decision-making at Leak-Tech
Waterproofing & Jobbing Pvt Ltd, a company in the construction industry, specialising in the
general building operations.

1.1 Background to the study

In the modern business landscape that is characterised by rapid changes and increasing
competition, effective decision making is supreme for organisational success. In that light,
management accounting has emerged as a critical function that provides essential information
to management for informed decision making that aligns with the strategic goals of the
organisation.

According to CIMA, London: “Management accounting is an integral part of management

concerned with identifying, presenting and interpreting information used for: (a) formulating
strategy; (b) planning and controlling activities; (c) decision taking; (d) optimising the use of
resources; (e) disclosure to shareholders and others external to the entity; (f) disclosure to
employees; (g) safeguarding assets. This involves participation in management to ensure that
there is effective: (i) formulation of plans to meet objectives (strategic planning); (ii)
formulation of short-term operation plans (budgeting/profit; planning); (iii) acquisition and
use of finance (financial management) and recording of transaction (financial accounting and
cost accounting); (iv) communication of financial and operating information; (v) corrective
action to bring plans and results into line (financial control); (vi) reviewing and reporting on
systems and operations (internal audit, management audit)."
Unlike traditional financial accounting and cost accounting systems which focus on historical
data and compliance, management accounting emphasizes the generation and analysis of both

Clemence Ndlala M240094

 3

financial and non-financial information to support planning, controlling and decision- making
processes (The Institute of Company Secretaries of India), though the basic data come from
the same accounting systems i.e., financial accounting and cost accounting systems. Any
information required for decision making is the concern of management accounting. It helps
in planning the future-because decisions are always taken for the future course of action. In
the decision-making process management accounting provides selective and fruitful
information out of the data collected . Management accounting collects and provides
accounting, cost accounting, economic and statistical information to the men at various
managerial levels to assist them in the performance of managerial functions and their
evaluations. It is the development and application of various techniques of recording,
analysis, interpretation and presentation, making the financial, costing, and other data active
and effective in the performance of managerial functions, viz., planning, decision-making and
control. Management accounting makes use of not only accounting techniques but also of
statistical and mathematical techniques. It is forward looking and should, therefore, be able to
treat economic information and data to make it suitable for use by the management.

Leak-Tech Waterproofing & Jobbing (Pvt) Ltd operates within a specialized construction
industry that requires precise and timely decision making to enhance competitiveness and
operational efficiency. Being a small to medium sized organization (SME), the company
faces unique challenges, including resource constraints, market fluctuations, and the need for
effective project management. In such an environment, the role of management accounting
becomes more critical as it provides more insights into cost management, pricing strategies
and performance evaluation.

Although the importance of management accounting has been recognized, there remains a
gap in understanding how these practices are specifically applied within SMEs, especially in
markets like waterproofing ang jobbing services. Previous studies have highlighted the
positive impact of management accounting on decision-making in various sectors, yet there is
limited empirical research focusing on the practical application of these principles in the
context of Leak-Tech Waterproofing and Jobbing (Pvt) Ltd. This study aims to fill this gap
by examining the role of management in the decision-making processes at Leak-Tech
Waterproofing & Jobbing (Pvt) Ltd.
Exploring on how management accounting information is utilized in real-world scenarios
provides valuable insights into the effectiveness of these practices in enhancing

Clemence Ndlala M240094

 4

organizational performance and also contribute to academic literature on management

accounting.

1.1.1 About Leak-Tech Waterproofing & Jobbing (Pvt) Ltd.

Leak-Tech Waterproofing & Jobbing (Pvt) Ltd is a company incorporated in
Zimbabwe in 2003 and it operates in the General Building Operations industry
offering the following services:
 Roof waterproofing
 Construction
 Wall and roof coatings
 Floor and wall tiling
 Carpentry
 Plumbing
The company offers the above services to a diverse of customers both in the private and
public sectors. These services are offered all year round although waterproofing jobs tend to
be on the pick during the rainy season.

1.2 Statement of the problem

Effective decision- making in today’s competitive business environment is crucial for the
success and sustainability of organisations. Management accounting plays a pivotal role in
providing both financial and non-financial information that enhances managerial decisions.
However, the specific impact of management accounting practices on decision making
processes within small to medium enterprises (SMEs) remains underexplored, particularly in
the context of specialized industries such as waterproofing and jobbing services.

As a case study, Leak-Tech Waterproofing & Jobbing (Pvt) Ltd presents an opportunity to
investigate how management accounting influences decision making in a practical setting.
Despite the recognized importance of management accounting, there is a gap in
understanding how its tools and techniques are applied in real world scenarios, particularly in
SMEs that operate in specialized markets.

This study aims to address the following problem: ‘How does management accounting
affect the decision -making processes at Leak-Tech Waterproofing & Jobbing (Pvt)
Ltd?’ Thus, the study will explore the types of management accounting information utilized,
the decision-making contexts in which this information is applied, and the perceived

Clemence Ndlala M240094

 5

effectiveness of these practices in enhancing organizational performance, Examining these

aspects seeks to contribute valuable insights into the role of management accounting in
facilitating informed decision making within the company, ultimately aiming to improve
operational efficiency and strategic alignment in the waterproofing industry.

1.3 Aim of the study

The study’s primary aim is to determine how management accounting affect the decision -
making processes at Leak-Tech Waterproofing & Jobbing (Pvt) Ltd.

1.4 Objectives of the study

The specific objectives of the study include:

 To investigate on how management accounting contributes to the decision- making

processes at Leak-Tech Waterproofing & Jobbing (Pvt) Ltd
 To identify and examine the specific management accounting tools and techniques
used at Leak-Tech Waterproofing & Jobbing (Pvt) Ltd in the decision- making
processes.
 To evaluate and assess the effectiveness of decisions made with the aid of
management accounting information, including financial performance and operational
improvements/
 To identify any challenges or limitations faced by Leak-Tech Waterproofing &
Jobbing (Pvt) Ltd in implementing management accounting practices in their
decision= making processes.

1.5 Research Questions

a) What is the importance of management accounting in the decision-making processes
at Leak-Tech Waterproofing & Jobbing (Pvt) Ltd?
b) Which management accounting tools and techniques are most frequently used by the
company and how do they influence decision-making?
c) How do decisions made using management accounting data compare to those made
without such data in terms of outcomes and effectiveness?

Clemence Ndlala M240094

 6

d) What challenges does Leak-Tech Waterproofing & Jobbing (Pvt) Ltd encounter in
utilizing management accounting for decision making and how do these challenges
affect their overall performance?

1.6 Hypotheses of the study

The following hypotheses shall be tested within this study

1.6.1

Ho: Implementing management accounting practices at Leak-Tech Waterproofing & Jobbing

(Pvt) Ltd significantly enhances the quality of decision- making processes within the
company.

H1: The implementation of management accounting practices at Leak-Tech Waterproofing &

Jobbing (Pvt) Ltd does not significantly enhance the quality of decision-making processes
within the organization.

1.7 Assumptions
 The research assumes that management accounting is integral to decision making and
plays a crucial role in the decision -making processes at Leak-Tech Waterproofing &
Jobbing (Pvt) Ltd, providing essential financial and non-financial information that
influences managerial decisions.
 It is also assumed that various management accounting tools and techniques such as
budgeting, variance analysis and performance metrics are actively used by the
company to support decision- making processes.
 It is further assumed that decisions made with the aid of management accounting
information lead to improved financial performance and operational efficiency at the
company.

1.8 Significancy of the study

1.8.1 The Company

The study will help management appreciate the role played by management accounting
information in the decision- making process. It will also offer practical recommendations for
the company for enhanced quality decision making processes through effective management

Clemence Ndlala M240094

 7

accounting practices by highlighting potential areas for improvement in the company’s

management accounting practices.

1.8.2 The Researcher

The researcher tends to benefit immensely from this study as he will get the much-required
knowhow in terms of using management accounting as a tool for decision making. for
companies involved in construction projects. Furthermore, the researcher stands to gain from
a wide consultative base with regard to project management issues such that these will assist
him in the management of future similar projects.

1.8.3 The study will contribute to the existing body of knowledge on management accounting
by providing empirical evidence from a real-world case.

1.9 Delimitation of the study

The research will be carried out in Harare at Leak-Tech Waterproofing & Jobbing (Pvt) Ltd
and its employees.

2.0 Literature Review

The literature review primary objective is to survey previous studies on management
accounting and its role in the decision-making processes in organisations. The proposed
research study aims to analyse the previous literature to form a rationale for the current
interest topic. The chapter will provide significant background information for the current
research, which shall be discussed in depth throughout the research. Key publications will be
identified and examined.

The literature indicates that management accounting is integral to organizational

performance, providing essential data for strategic planning and operational control. Previous
studies have highlighted the importance of management accounting information in decision-
making, emphasizing its role in enhancing economic performance and sustainability.

3.0 Research Methodology

This is a description of how the objectives will be realized. The current study proposes to use
the mixed research method to investigate on the role of management accounting in decision-
making processes at Leak-Tech Waterproofing & Jobbing (Pvt) Ltd. This will be achieved by
administering structured surveys and interviews to employees and management at Leak-Tech

Clemence Ndlala M240094

 8

to gather numerical and non-numerical data on the use of management accounting practices
and their perceived impact on decision-making. The use of this method will facilitate
objectively collecting and analysing both numerical and non-numerical data for a reasoned
combination on the relationship between management accounting practices and decision
outcomes, thus combining rich descriptive data with numerical insights.

3.1 Types and sources of data

For the proposed study to achieve its aim and objectives, it needs to rely on primary and
secondary research.

Primary Research

With this method, the researcher will be directly involved in the data collection process
instead of depending on already existing data with regards to the research context. Gathering
firsthand information is considered to be more valid and authentic in a research environment.

Secondary Research

This will involve using already existing data in carrying out the research. This will include
internal management reports and financial statements, budgets, research material published in
research reports and similar documents. These documents can be made available by
management, public libraries, websites, data obtained from already filled in surveys.

Thus, data available on the internet and commercial information sources will be used in this
study.

3.2 Data collection methods

The following methods in gathering data on which conclusions shall be drawn will be used:

 Interview method. This will be achieved by the use of face-to-face interviews with
key stakeholders that include managers from various departments ( for example,
finance, operations). The researcher will employ the semi-structured interviews by
preparing a set of open-ended questions that guide the conversation while allowing
flexibility for participants to give more on their experiences and insights.

 Surveys using questionnaires to gather numerical data on the use of management

accounting practices and their impact on decision making. This will allow for

Clemence Ndlala M240094

 9

statistical analysis of the relationship between management accounting practices and

decision out-comes.

 Document Analysis involves analysing and reviewing relevant documents, reports,

budgets, financial statements and policy manuals that provide insights into the
management accounting practices of the company. This method allows for
triangulation of data, thus enhancing the validity of the results by comparing insights
from interviews with documental evidence.
 Observation. This will involve participatory informal observation during
management meetings ( with permission granted), to witness firsthand on how
management accounting information is utilized in real time discussions.
3.3 Data collection instruments
The following instruments will be used:

 Interview schedule
 Questionnaires
 Observation schedule

3.4 Population definition

The universal set of elements which the sample shall be established will be defined and
grouped as follows:

 Leak-tech Employees
 Management team
 Project supervisors
 Management reports, budgets, financial statements

3.5 Sampling
The research shall make use of simple random sampling and purposive sampling.

Justification of the sampling methods

Simple random sampling technique makes it possible for every item in the population to
have an equal chance of being included in the sample. Purposive sampling will aid in
collecting data very fast especially where there is 100% sampling.

Clemence Ndlala M240094

 10

4.0 Data Analysis

Data will be analysed using both manual and computer means. Available existing financial
data and performance metrics will be used to conduct statistical analyses. This could involve
correlational analyses to examine the relationship between the use of management accounting
information and financial performance indicators. Triangulation will also be used to cross
verify findings using multiple data sources and enhance the credibility of the research ( by
comparing insights from interviews, document analysis, observations, the researcher can
ensure that conclusions drawn are robust and well supported, than relying on a single source
of data which may give rise to biases.

4.1 Data presentation

Data will be presented using narrative form, tables and graphs.

4.2 Ethical Considerations.

The tenets relating to ethical conduct during the research process will be observed. These
include the protection of participants from harm, informed consent, the right to privacy and
confidentiality, and professional conduct. The participants will be informed of the purpose,
nature, and their roles in the study. They will also not be exposed to demeaning treatment or
embarrassing situations. Information obtained from participants will not be made public and
their names will also not be published during and after the research. The researcher will also
try to report the research findings honestly with no misrepresentations. The data collected
during the research will be treated with integrity and kept confidential and utilised for the
purpose of research only without personal opinions to influence the information and the
conclusion reached.
5.0 Budgeting of the project

Item Amount ($ USD)

Travel 50

Communication 30

Typing and Printing 60

Internet Time 40

Stationery 30

Clemence Ndlala M240094

 11

Binding 20

Total 230

6.0 Schedule of Activities

Gantt chart time budget will be used.

7.0 Submission of the research project proposal

I do hereby submit this research proposal for your assessment and approval.

8.0 Approval section

Supervisor ……………………….

Date ………………………….

Signature …………………………….

Clemence Ndlala M240094

 12

References
Attrill P., MacLaney E. (2018) Management Accounting for Decision Makers.

ACCA F2 Management Accounting- Study Notes

Allot, A Management Accounting Change. (The Institute

of Management Accountant: CIMA)

C.T. Hongren Cost and Management Accounting-A Managerial

Emphasis.
Drury Colin Management and Cost Accounting
M.N. Arora Cost and Management Accounting (Theory &
Problems)

Clemence Ndlala M240094