Abstract

Author:
Joseph Alfred M. Reyroso, Venus C. Ibarra

Doi: 10.26480/bosoc.02.2024.90.95

This is an open access article distributed under the Creative Commons Attribution License CC BY 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

The study is to determine the financial performance of Small and Medium Enterprises (SMEs) in terms of return on investment, sales margin, capacity utilization, and market share as a tool to determine effective management accounting practices, Descriptive research design was utilized, and data were analyzed using weighted mean and Pearson’s correlation coefficient analysis. A total of one hundred fifty–eight (158) management accountants of selected SMEs in Quezon province participated in the survey. Study shows the mean perceived level of financial performance as “high level” on SMEs competitors in the dimensions of return on investment, sales margin, capacity utilization and market share. The results also indicate a significant impact of the extent of use of management accounting practices and perceived level of financial performance of SMEs. The results of the study will provide useful inputs for developing guide to improve financial performance to be used by the SMEs in Quezon Province for effective management accounting practices.