For the past ten years, manufacturing concerns in the Vaal Triangle have been experiencingdifficult times. Various companies have decreased their operations and work-force, andcertain companies have had to close their doors. This has brought about high levels ofunemployment and poverty in the region, which leads to high levels of crime. To ensure thesurvival of the Vaal Triangle community, the closure of more manufacturing companiesshould be prevented. A vast amount of industrial development and job creation is needed.A fundamental goal of every manufacturer, is to be profitable and to gain, or to retain, thecompetitive advantage. In order to succeed in this, a manufacturer has to manufacture thehighest quality product possible, at the lowest possible cost. Traditionally, cost accounting hasall along focussed on determining the cost of producing their products. In the modemmanufacturing environment, although it is still important to know the cost of production, it isno longer sufficient. Companies need accurate cost information so as to integrate productdevelopment, production, marketing, and after-sales service to customers. In recent years,rapid technological development has brought about change in production methods andavailable products. Global competition has made it increasingly difficult to obtain and toretain the competitive advantage and manufacturers have increasingly focused on costmanagement, which produces information useful to managers in costing, planning, controllingand decision-making. Various new techniques were developed, including benchmarking, totalquality management, continuous improvement ("kaizen"), activity based costing andmanagement, business process re-engineering, the theory of constraints, target costing, and lifecycle costing.In this study, the application of Cost and Management Accounting as a tool for thedevelopment of manufacturing concerns in the Vaal Triangle, is investigated. Data on thecurrent use of Cost and Management Accounting by manufacturing concerns in the Vaal Triangle, and the performance of these concems, were collected by means of a st~cturedquestionnaire.It was found, that manufacturers use many Cost and Management Accounting methods andtechniques, but that some of these are not used effectively. It is recommended, that intensivetraining programmes be implemented so as to ensure that all employees are properly trainedand knowledgeable in the methods and techniques applicable to their specific function, thusensuring the attainment of company goals and a competitive advantage. This will assist in thedevelopment of manufacturing concems in the Vaal Triangle, ensure their survival andprosperity, and lead to job creation and the prosperity of the Vaal Triangle region and all itspeople.
