Alexander Schulz – Cost Accounting in German Multinational Companies - An Empirical Analysis

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Cost accounting is one of the key management accounting instruments. Despite global tendencies of harmonization, there are still national particularities in the design of cost accounting systems. These particularities yield a tension for MNC operating in different countries. On the one hand, MNC may seek to standardize their systems, as they need comparable cost information for decision-making. On the other hand, their subunits may demand a different complexity of the system for their local business, which contradicts a firm-wide aligned cost accounting system.

Despite the relevance of cost accounting in practice, there is a lack of empirical evidence covering this issue in management accounting research. This study therefore examines the design of cost accounting systems in MNC from the perspectives of both the headquarters and their subunits. Interviews with experts are held to explore the standardization of cost accounting systems from a headquarters’ perspective. In addition, a survey is conducted to mirror the perspective of the subunits. This mixed-method approach allows to conduct a range of cross-case and cross-national analyses. Structured in four sub-studies, this thesis provides a thorough investigation of cost accounting in MNC.

The descriptive study finds remarkable differences in the complexity and standardization of cost accounting systems depending on the different cases and locations of the subunits. In addition, the explorative study detects several determinants that play a significant role in the design of the systems in subunits of MNC. Moreover, an increase in complexity is found to be associated with an increased objective achievement and an increase in the degree of standardization of a system with a higher satisfaction of management accountants.

These results have several implications for researchers and practitioners working in headquarters and subunits of MNC. The study elaborates and discusses these implications.