Abstract:
The study was carried out to assess the effects of Management Accounting Practices on SMEs. Specifically, the study achieved the following objectives; examined the extent use of management accounting practices by SMEs, determined the importance of management accounting practice in SMEs performance and assessed the effects of management accounting practice on the performance of SMEs. This study employed a case study design in the process. A sample size of 88 respondents was drawn, whereby 40 respondents were drawn from Kinondoni and 48 respondents from Ilala municipality. The study revealed that Management Accounting Practice does not directly contribute to the failure or success of the firms but has a relationship as it helps to support the firm to improve its management efficiently and effectively. The existence of both internal and external factors like technology advancement need also be incorporated when assessing the effects of Management Accounting Practices on SMEs.
