According to contingency theory, the appropriateness of different control systems
depends on the settings of the business. Moreover, the term contingency means that
something is true only under specific conditions. As such, there is no “contingency
theory,” but rather a variety of theories which may be used to explain and predict the
conditions under which a particular Management accounting system is found or where they are associated with
enhanced performance (Anthony and Govindarajan, 2007; Chenhall, 2003).