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Cost accounting in Finland: current practice and trends of development


  • Kari Lukka
  • Markus Granlund


Recent changes in marketing strategies, competition and production environments, and consequent changes in cost structures, have been argued as imposing pressure for change on current cost accounting. Characteristic of the present situation is the serious lack of information concerning the current state of cost accounting practice. The purpose of this study is to describe and analyse the present state, and trends in the development, of cost accounting practices in large and middle-sized Finnish manufacturing units, using a questionnaire survey method. The usable response rate was 44 per cent (135 units). According to the respondents, significant changes have emerged in several areas of their operating environments and strategies during the last few years. Even though these changes have affected a number of cost accounting issues, their most significant effect has been the decrease in the proportion of direct labour costs in unit cost structures. The most important problem areas of cost accounting relate to the allocation of various overhead costs to products. The application of the so-called new cost accounting methods seems to be very infrequent: none of the responding units reported their true application. However, there were indications of current implementation of activity-based costing systems, as well as wide interest in developing them.

Suggested Citation

  • Kari Lukka & Markus Granlund, 1996. "Cost accounting in Finland: current practice and trends of development," European Accounting Review, Taylor & Francis Journals, vol. 5(1), pages 1-28.
  • Handle: RePEc:taf:euract:v:5:y:1996:i:1:p:1-28
    DOI: 10.1080/09638189600000001

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    Cited by:

    1. Eric Korpi & Timo Ala-Risku, 2008. "Life cycle costing: a review of published case studies," Managerial Auditing Journal, Emerald Group Publishing, vol. 23(3), pages 240-261, March.
    2. Alnoor Bhimani, 2002. "European management accounting research: traditions in the making," European Accounting Review, Taylor & Francis Journals, vol. 11(1), pages 99-117.
    3. John Brierley & Christopher Cowton & Colin Drury, 2001. "Research into product costing practice: a European perspective," European Accounting Review, Taylor & Francis Journals, vol. 10(2), pages 215-256.
    4. Zounta, Stella & Bekiaris, Michail G., 2009. "Cost-based Management and Decision Making in Greek Luxury Hotels," MPRA Paper 25459, University Library of Munich, Germany, revised 27 Aug 2009.
    5. Olivier De La Villarmois & Yves Levant, 2010. "La mise en place et l'utilisation de la méthode UVA : une comparaison de deux enquêtes réalisées en 2001 et 2009," Post-Print hal-00476984, HAL.
    6. Alexander Himme, 2012. "Critical success factors of strategic cost reduction," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 23(3), pages 183-210, December.
    7. Toomas Haldma & Kertu Laats, 2002. "Influencing Contingencies On Management Accounting Practices In Estonian Manufacturing Companies," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 13, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    8. Maurice Gosselin, 2000. "Influence de la stratégie sur l'adoption et la mise en oeuvre d'une comptabilité par activités," Revue Finance Contrôle Stratégie,, vol. 3(4), pages 37-56, December.
    9. Lino Cinquini & Paolo Collini & Alessandro Marelli & Andrea Tenucci, 2008. "An exploration of the factors affecting the diffusion of advanced costing techniques: a comparative analysis of two surveys (1996-2005)," Working Papers 200801, Scuola Superiore Sant'Anna of Pisa, Istituto di Management.
    10. Tarek Chanegrih, 2008. "Les changements dans les outils de contrôle de gestion : une analyse comparative," Post-Print halshs-00522461, HAL.
    11. Lino Cinquini & Paolo Collini & Alessandro Marelli & Andrea Tenucci, 2015. "Change in the relevance of cost information and costing systems: evidence from two Italian surveys," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(3), pages 557-587, August.
    12. Tarek Chanegrih, 2010. "Les changements en contrôle de gestion - quelle nature et quelles finalités?," Revue Finance Contrôle Stratégie,, vol. 13(1), pages 5-32, March.
    13. Gerdin, Jonas, 2005. "Management accounting system design in manufacturing departments: an empirical investigation using a multiple contingencies approach," Accounting, Organizations and Society, Elsevier, vol. 30(2), pages 99-126, February.
    14. repec:ers:ijebaa:v:iv:y:2016:i:2:p:93-116 is not listed on IDEAS
    15. Hanen Moalla, 2006. "La diffusion de la méthode ABC en Tunisie," Post-Print halshs-00548107, HAL.
    16. Cinquini, Lino & Collini, Paolo & Marelli, Alessandro & Tenucci, Andrea, 2008. "An exploration of the factors affecting the diffusion of Advanced Costing techniques: a comparative analysis of two surveys (1996-2005)," MPRA Paper 10911, University Library of Munich, Germany.
    17. Evdokia I. Tsifora & Prodromos D. Chatzoglou, 2016. "The evolution of costing during the period 1985-2015: Progress or inactivity?," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece, vol. 9(2), pages 7-17, June.
    18. repec:eee:advacc:v:31:y:2015:i:1:p:150-164 is not listed on IDEAS
    19. Simon Alcouffe & Pierre Mévellec, 2012. "Analyse De La Litterature Sur L'Abc Et Proposition D'Une Taxinomie," Post-Print hal-00936600, HAL.

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