The growing pressure felt by municipalities for the provision of higher quality services, the
increasing concern of becoming more efficient and effective in the measures that they adopt, the
responsibility to promote greater transparency in their accounts and the compromise that falls
upon its acts, leads to the need to assess the potential of a cost-accounting system (CA) that can
assist decision-making.
Having this in mind, this study investigates whether municipalities make use of CA information
to support their decisions, or if the implementation of CA happens mainly for purposes of
compliance with the legal requirements. Additionally, the study examines the usefulness of the
statements required according to the Chart of Accounts for Local Government (POCAL), both in
terms of their content and format, to convey information useful for decision-making.
The research, developed through a qualitative analysis, follows an inductive method, using
case studies of municipalities with and without CA from the Centre Region of Portugal. In the
development of the empirical study, data were collected through interviews with policy and decision-
makers (President/Alderman) and municipal technicians more directly involved with CA.