Design of management accounting systems in public administration: A case study

Abstract

Purpose: This work aims to design a management accounting system (MAC) framework for a public sector organization. Many public entities experience difficulties in designing and implementing MACs. Our proposal intends to be as a useful tool in the accomplishment of this task. Methodology: A comprehensive case study of the organizational structure and operational activity was performed, following an interventionist research with the aim of designing a cost accounting system for a public sector organization. Results: A framework for implementing a management accounting system in the public sector is proposed. Originality: The literature highlights the difficulty and failure in the implementation of management accounting systems in the public sector organizations. This research intends to contribute to this discussion, presenting a roadmap for the MAC’s implementation process, highlighting possible obstacles that may arise.