Proceedings of 8th Annual London Business Research Conference Imperial College, London, UK, 8 - 9 July, 2013, ISBN: 978-1-922069-28-3 Theoretical Perspective of the Application of a Cost Accounting System (CAS) in Sri Lanka Nagirikandalage, Padmi and Binsardi, A Cost Accounting System (CAS) is the key financial control system which monitors the results of all activities and all other control systems in an organisation. Empirical evidence has shown that different factors such as competition, changing dynamics, size, etc., have influenced on demand for CAS. However, the evidences have shown mixed results and there is a lack of evidence from the developing country or emerging economy context as well. Hence, this research study aims to look at the theoretical perspective of the application of a CAS in Sri Lanka. The broad aim of the study is to identify the determinants of CAS and obtain an in-depth analysis of the role of the CAS within an organisation in an emerging economy such as that of Sri Lanka. The proposed methodology for the research study is to carry out an external desk research to analyse the existing reports available in Sri Lanka. The determinant factors for the application of CAS such as competition (Structure-Conduct-Performance (SCP) paradigm), size and changing dynamics are being analysed as per the developing country context such as that of Sri Lanka. The country’s economy has been booming since the civil war ended in 2009 and therefore, the investments have been increased hence has an impact on the organisations to consider in more infrastructure investments such as technology which in turn tends to look into implement new systems such as CAS as well. Key words: Cost accounting systems, External desk research, SCP paradigm _______________ Nagirikandalage, Padmi and Binsardi, A Email for correspondence: pradeepikaa@yahoo.com or a.binsardi@glyndwr.ac.uk