Measuring the Effect of Use Activity-Based Costing system on Improving Financial Performance of Industrial Public Shareholding Companies. = قياس أثر استخدام نظام محاسبة التكاليف المبني على أساس الأنشطة على تحسين الأداء المالي في الشركات الصناعية المساهمة العامة

Dr. Majdi Alkababji

2012, Al-Balqa Journal for Research and Studies

This study was to shed light on the extent of use Activity-Based Costing system that applied by industrial public shareholding companies in the environment of Jordan as one of the latest developments in accounting and management used in many of the world's powerful and influential companies, Many studies proved that adoption of this system will raise the competitiveness, productivity, efficiency, continuous improvement of quality, and reduce the costs of industrial and service companies alike. It also aimed to examine whether the use of Activity-Based Costing system has impact on improving the financial performance of the company. The researcher used the method of comprehensive survey of the study population represented by all Jordanian industrial corporations by distributing questionnaires to access to the companies using for the activity-based costing system, The study sample was composed of 15 companies. As for the financial performance, indicators were obtained from the ASE (Amman Stock Exchange) and the SDC (Securities Depository Center) for the period (2005 to 2009). Two statistical approaches were adopted: the descriptive statistical approach to demonstrate and describe the features of the study population; and the analytical statistical approach through performing the appropriate analysis of the nature of the study. The results showed a statistically significant positive relationship between the basic elements application collectively of activity-based costing system and the variables of enabling conditions of success among industrial public shareholding companies. There is no effect of the basic elements application collectively of activity-based costing system on improving the financial performance among industrial public shareholding companies. In light of the results of the study, the researcher recommends companies that seek to use the activity-based costing system should plan the possibility of application through studying the enabling conditions of success which represents justifications and reasons to use the system, to avoid failure as a result of using the system.