SMA and recession influences affected pandemic businesses in Albania

Proceedings of The 5th International Conference on Applied Research in Management, Economics and Accounting

Year: 2022

DOI:

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SMA and recession influences affected pandemic businesses in Albania

Ph.D. (c) Ejona Duçi,Dr. Rovena Troplini (Vangjel), MSc. Xhenisa Myshketa

 

ABSTRACT: 

The economic health of different counties in the world depends on the ups and downs that can happen and affect almost every business, whether they can be positively or negatively affected. Each of them can come across difficulties when it comes to facing global financial and economic crises. The leaders, managers, employees, and every integral part of an organization must think together about dealing with all these imbalances; where I must mention the complex role and power that management and cost accounting have in challenging times. 

 My study is focused on the role that management and strategic management accounting plays in recession, specifically in the economic downturn caused by the pandemic of Covid 19, by analyzing how managers could cope with it and what decisions were made on time. The subjects to be studied are the most affected Albanian businesses, especially the health and tourism sectors. Both have an essential role in our country’s economy by providing and offering the highest incomes in the state budget. They have been affected in different directions. The health industry has had a positive increase in revenues. In contrast, the tourism and transport sector has been negatively impacted by totally decreasing their payments, causing a recession and total collapse. The most crucial part being analyzed is the tourism sector. The analysis and conclusions will show what kind of decisions they have made and how difficult it was to evaluate the situation and find alternative ways to survive in the market. The questionnaire results concluded that most businesses had had a negative impact from the pandemic created and have been unprepared for its consequences. Most companies have chosen to cut costs by cutting jobs and cutting costs. According to them, the assistance they have received from the government has been very minimal compared to the risks they have faced. Most businesses anticipate that it will take a very long time to rectify the consequences of this pandemic.

keywords: Managerial Accounting, strategic management accounting, recession, cost accounting, budget, tourism, Covid-19’s pandemic.