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The Impact of Applying Time Driven Activity-Based Costing on Improving the Efficiency of Performance in Jordanian Industrial Corporations: A Survey Study

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  • Nabil Bashir Al-Halabi
  • Yazan Mjahed Al-Mnadheh

Abstract

The paper explored the impact of applying the time driven activity-based costing-TDABC- model (independent variables) on improving the efficiency of performance (dependent variables) in Jordanian industrial corporations. Based on a questionnaire form data from a sample of 73 participants at different managerial positions, from 30 industrial corporations listed in Amman stock exchange (ASE), were gathered and processed using the statistical package of social sciences. The main results showed that there are significant impacts of applying TDABC on improving the efficiency of performance in Jordanian industrial corporations. The main conclusion indicated that TDABC has the ability to benefit from technological developments on the basis of the activities¡¯ charts and reflected on pricing decision making processes in industrial corporations. The research also concluded that senior management and cost accountants of the sample studied did not desire in the short run to change the current cost accounting system due to the additional costs of using the new cost accounting system. The study recommended the application of TDABC in corporations where their operations relied on TDABC¡¯s constituents as proved its impact on reducing costs of products and increasing corporations profitability.

Suggested Citation

  • Nabil Bashir Al-Halabi & Yazan Mjahed Al-Mnadheh, 2017. "The Impact of Applying Time Driven Activity-Based Costing on Improving the Efficiency of Performance in Jordanian Industrial Corporations: A Survey Study," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(12), pages 24-31, December.
    • Handle: RePEc:ibn:ijefaa:v:9:y:2017:i:12:p:24-31
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    References listed on IDEAS

    as
    1. Lin, Wen-Cheng, 2012. "Financial performance and customer service: An examination using activity-based costing of 38 international airlines," Journal of Air Transport Management, Elsevier, vol. 19(C), pages 13-15.
    2. Sunil Dutta & Frank Gigler, 2002. "The Effect of Earnings Forecasts on Earnings Management," Journal of Accounting Research, Wiley Blackwell, vol. 40(3), pages 631-655, June.
    3. Michel Gervais & Yves Levant & Charles Ducrocq, 2010. "Time-Driven Activity-Based Costing (TDABC): An Initial Appraisal through a Longitudinal Case Study," Post-Print halshs-00555218, HAL.
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    More about this item

    Keywords

    time driven activity-based costing; performance efficiency; Jordanian corporations;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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