Management Control Systems Practices in Small and Medium Enterprises

How to Cite

Quinco, D. (2023). Management Control Systems Practices in Small and Medium Enterprises. Journal of Education, Management and Development Studies, 3(4), 1–10.


Small and medium-sized enterprises (SMEs) comprise 99.6\% of the Philippine economy. Many studies have said that SMEs do not need and do not use management control systems (MCS) due to their simple organizational structure and limited resources. Most MCS research and their empirical evidence have nearly been completely founded on information from bigger organizations or their sub-units. It has been expressed that modern Management Accounting Practices (MAPs) and sophisticated systems may likewise be valuable for private ventures, albeit small firms may have dissimilar needs than their larger counterpart. Thus, this study determines the MCS adopted and used in SMEs in Misamis Occidental. A descriptive study using a survey questionnaire was administered to 100 randomly selected SMEs in Misamis Occidental. The questionnaires were personally delivered and administered to facilitate questions raised by the respondents regarding the items in the survey. The result showed that SMEs in Misamis Occidental utilize a wide scope of MCS practices and information. However, numerous practices are not incorporated as profoundly and systematically into their business operations. The outcome also shows that MCS is themed with financial, customer-oriented, and strategic-oriented controls. Thus, aside from designing MCS suited to SMEs, there is a need to guide them in the technical application, adoption, and utilization of MCS data. The data can be used as a base for additional scholarly examination in business.


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