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Egyptian manufacturing companies in the ex-public industrial sector have suffered from relatively various obstacles, with problems in production planning and control in particular. These impediments were responsible for negative effects on costs and caused low profitability for these companies in most years. Cost accounting systems were basically established for the purpose of preparing financial statements not for operational control. The literature was reviewed to explore the recent developments in cost accounting systems such as open book accounting. To examine this research phenomenon empirically, a case study was conducted in an Egyptian ElNasr automotive manufacturing company. Data were collected from published and unpublished reports and by semi-structured interviews within the case company. The major findings of this study were that manufacturing environment played a significant role in designing cost accounting systems. It concluded that planning capabilities of the company and suppliers play a significant role in the process of cost reduction and improve the competitive position.

The Impact of manufacturing environment on the Performance of the Egyptian Automotive Industry