This study analysed perceptions on the application of cost accounting in the budgeting process, a
case of the City of Tshwane (CoT) municipality. Employee perceptions were analysed to
determine whether recognised costing techniques were being applied, and if so, were those
costing techniques being efficiently and effectively applied. An analysis of the employee
perceptions of the reliability of the currently implemented costing techniques for the preparation
of budget estimates, together with the employees’ perceptions of management’s implementation
and maintenance of the budget estimates, as required by legislation, was also conducted.
The research instruments comprise questionnaires that were distributed to all municipal officials
at CoT who are responsible for budgeting within their municipal department or division, and
semi-structured interviews were conducted with selected officials. Data collected from the
participants were descriptively analysed. This study identified a performance gap between the
potential of the costing techniques nominally being used and the manner in which CoT budget
officials actually apply them. Based on the conclusions drawn from the analysis of the data,
recommendations were made. Some of these recommendations include that officials of the CoT
should improve training on the proper application of currently used costing techniques and that
the CoT should conduct a pilot study aimed at introducing transfer pricing (TP) and standard
costing as their next-generation budget costing techniques. In addition, including decisionmaking
tools, such as cost-volume and profit (CVP) analysis in the costing process can add value
to the budget costing process if applied as a cost-volume and service (CVS) analysis.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:tut/oai:encore.tut.ac.za:d1001155 |
| Date | 08 July 2014 |
| Creators | Malepe, JS |
| Publisher | Tshwane University of Technology |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Text |
| Format | |
| Rights | TUT |
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