The survey explores Chinese financial professionals’ proficiency at management accounting methods and tools and helps identify the competencies and skills needed most.

The majority of firms surveyed were medium and large enterprises from a diverse array of industries (including manufacturing and engineering, wholesale and retail trade, and information and communication technology).

Four specific management accounting competency areas were considered:

  • Budgeting
  • Performance Management
  • Cost Management and Decision Analysis
  • Risk Management

In each area, skills were rated from highest to lowest in importance. The topline findings include:

  • The top budgeting-related skills were (1) preparing a cash budget, (2) understanding the importance of pro forma financial statements and the relationship between these statements and all other budgets, and (3) identifying the role of budgeting in formulating short-term objectives and planning and controlling operations to meet these objectives.
  • Performance management requirements and standards are constantly changing with enterprises’ development needs at different stages.
  • Chinese enterprises are facing many new opportunities and challenges in the context of globalization and gradual maturity of China’s socialist market-oriented economy system.
  • Three decision analysis skills given the highest priority by respondents are (1) calculating the breakeven point in units and dollar sales to achieve target outcomes, (2) using cost-volume-profit (CVP) analysis to examine the behavior of total revenues, total costs, and operating profits as changes occur; and (3) calculating multiple-product breakeven points based on given sales mix.


Other areas explored by the survey include:

  • Effectiveness of management accounting in achieving organizational goals
  • Obstacles enterprises are confronted with in promoting management accounting
  • Motivating and developing management accounting staff
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