Managing the Impact of Economic Recession on Nigerian Economy: The Role of Management Accountants

Abstract

The study examined the role of management accountants in managing the impact of economic recession on Nigerian economy. The survey method of research design was adopted for the study. The population of the study comprised forty eight (48) manufacturing firms listed on the Nigerian Stock Exchange. Data were collected from primary source through interview of the management accountants in each of the selected firms and analyzed using T-Test Statistics. Findings show that the key roles played by management accountants in managing the impact of economic recession on Nigerian economy include; engaging in bulk purchases of raw materials and competitive buying, sourcing alternative local raw materials, embarking on cost engineering, prompt analyses of segments/products contribution margin, and carrying out comprehensive investment appraisals of every project to know the viable ones. Some other key roles were the use of weighted average costing method for valuing materials and replacement value method for pricing the finished goods. Based on the findings, we recommend that the producers of local raw materials for the manufacturers should endeavour to improve on the qualities of their raw materials to come up to the standard quality desirable by manufacturers. Also, management accountants should perform their duties with meticulous professionalism by reacting promptly to the signs of an economy being in recession and report to the relevant authority.