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Abstract

Small Medium Enterprises is the backbone for any economy. It is a newly developed concept for the developedand developing nations.Sustainable economic growth is derived from the small medium enterprise growth in the sector. The researches on the management accounting practices in SMEs sector are limited resulting in the lack of literature reviews for the new research on the cost accounting for the SMEs sector. The success or the failure of any SMEs depends on the pricing strategy, budgeting control, variances and other cost control measures. This article is a study ofthe traditional management accounting techniques such as marginalcosting, capital appraisal techniques and others methods. In addition, the study also includes the modern management accounting techniques such as balanced scorecard, activity based costing, target costing and other modern management accounting techniques. Most SMEs businesses are operated by the owner or afamily member who has limited knowledge of cost accounting that can have an impact on their business productivity. This article can be a guideline to enhance the existing conceptual knowledge ofthe managementaccounting practices for the existing and the upcomingSMEs.