MANAGEMENT PRACTICES AND COST SYSTEM DESIGN: EVIDENCE FROM JORDANIAN MANUFACTURING COMPANIES

Abstract

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.