Financial and Cost Accounting Practices of the Shipbuilding Industry of Bangladesh

Author: Emranul Hoque, Shahnaz Akter
DOI: doi.org/10.70279/bmj-v8-i1-1033
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The government of Bangladesh is providing various financial incentives like reduced tax rates, lower import duties, and export subsidies to the shipbuilding industry of the country. Financial soundness along with a growing domestic market, competitiveness for the international small vessel segment, availability of skilled engineers and workers, and availability of shipbuilding cluster are necessary for the next step development of the shipbuilding industry. The aim of this study is to explore the current financial and cost accounting practices, identify the relationship among the variables, and find out the significance of the factors that affect the current financial and cost accounting practices of the shipbuilding industry of Bangladesh. Descriptive statistics, Pearson’s product-moment correlation analysis, and a Multi-Criteria Decision Making (MCDM)-BWM have been applied to analyze the data. The study shows that there is a positive perception among professionals regarding the expert knowledge of qualified 
accountants and the application of cost and management accounting. It also reveals that the relationship between the ACC and QFA, IC and CFR are significantly highly positive on the other hand the CMA and QCA, MCC and MPV are also highly and moderately positive respectively. The result of this study suggests increasing the qualification of financial and cost accountants so as to increase the accuracy of financial reporting that affects the potential investors’ perception of the industry.