Open AccessMANAGEMENT PRACTICES AND COST SYSTEM DESIGN: EVIDENCE FROM JORDANIAN MANUFACTURING COMPANIES
Author(s) -
Majdy I. Zuriekat
Publication year - 2020
Publication title -
humanities and social sciences reviews
Language(s) - English
Resource type - Journals
ISSN - 2395-6518
DOI - 10.18510/hssr.2020.81109
Subject(s) - activity based costing , business , operations management , manufacturing , total quality management , target costing , cost accounting , product (mathematics) , process management , manufacturing engineering , marketing , engineering , lean manufacturing , accounting , geometry , mathematics
Purpose: The purpose of this study is to reveal and examine the nature of costing systems design alongside the usage of new manufacturing practices in Jordanian Manufacturing Companies.
Design/Methodology/Approach: For carrying out the study, 86 managers from 43 manufacturing companies received the study questionnaire from which 56 were valid for data analysis. The study results are presented using multiple regression analysis.
Findings: The results using multiple regressions indicate that Just in Time (JIT), Total Quality Management (TQM) and Product Diversity (PD) has a significant influence on costing systems design.
Implications: This study provides evidence on the importance of using management practices as a driver for companies to use a broader perspective for designing costing systems. Responding managers have now empirical evidence regarding the manufacturing practices needed to design costing systems to their companies.
Originality/Value: This is the first attempt to examine the manufacturing practices as a driver for cost system design. The study also provides significant managerial implications on how to use manufacturing practices to ensure better cost system design.