Activity-Based Costing (ABC) Systems within Jordanian Industrial Companies: Factors that Facilitate, Motivate and Create Barriers to ABC Implementation

The diffusion of Activity Based Costing (ABC) has been researched extensively in developed countries. Research on these issues in Jordan in general and within the Jordanian industrial sector more specifically is limited. The aim of the current research is to contribute to the design and successful ABC implementation in the Jordanian industrial sector.<br/><br/>To achieve the aim of the research, the research methodology included both quantitative and qualitative data. The first stage was a quantitative study. The questionnaire survey was developed and the primary aims were to determine the current state of ABC adoption and implementation. The factors that facilitate, motivate and create barriers to ABC implementation were examined. In the second stage, semi-structured interviews were used to probe the significant results of the questionnaire survey. The interviews were conducted with 6 companies that have implemented ABC in full and currently using ABC information.<br/><br/>The survey findings indicate that ABC implementation among Jordanian industrial companies is quite satisfactory. The rate of ABC implementation is about 50.8%. Within the Jordanian industrial sector, the interaction between the following factors facilitated and motivated the implementation of ABC, namely: top management support, both training and education about the system, higher information technology, increasing proportion of overhead costs, growing costs, including product costs and administrative costs, and an increasing number of product variants.<br/><br/>The interviews with financial managers/heads of cost accounting departments are consistent with questionnaire survey findings and both reveal and emphasise the important effect of consultants, professional management/accounting bodies and cooperation between academics and professionals upon implementing ABC within the Jordanian industrial sector. Therefore, it can be concluded that it is not only demand but also supply factors that influence implementation of ABC within the Jordanian industrial companies.

Name dc:type.qualificationname

Doctoral Thesis

Level dc:type.qualificationlevel

Student thesis

Year dc:date.issued

2010

Author dc:creator

• Nassar, Mahmoud

• Activity-based Costing Systems (ABCs)
• Industrial Companies
• Jordan
• Management accounting
• Industry
• Accounting
• Developing countries
• Financial management

Language dc:language

eng

Identifier

oai:pure.atira.dk:studenttheses/fd700302-fd52-41ba-b53a-db34b28d1b09

OAI identifier oai:identifier

oai:pure.atira.dk:studenttheses/fd700302-fd52-41ba-b53a-db34b28d1b09