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The Role of Cost Accounting Data in Enhancing Manufacturing Efficiency

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  • Ruhul Quddus Majumder

    (Daffodil Institute of IT Chattogram, Bangladesh)

Abstract

In a more dynamic and competitive manufacturing industry, cost management is a key factor in the success of operations. The research aims to investigate how various cost accounting practices, when applied, impact the efficiency of manufacturing processes, with a particular focus on the comparative performance of Activity-Based Costing (ABC) and the traditional method. Based on a mixed-methods study design, the study involved surveying 50 medium- and large-sized manufacturing companies, conducting interviews with their executives, and reviewing their financial statements. The quantitative analysis was done with SPSS, and it showed that there was a significant negative relationship (r = -0.68) between ABC adoption and cycle times, and the regression results showed that ABC contributes about 48 per cent of the variance in manufacturing efficiency (R 2 = 0.48, p

Suggested Citation

  • Ruhul Quddus Majumder, 2025. "The Role of Cost Accounting Data in Enhancing Manufacturing Efficiency," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(7), pages 4542-4553, July.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-7:p:4542-4553
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    References listed on IDEAS

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    1. Mohammad Mahdi Rounaghi & Hajer Jarrar & Leo-Paul Dana, 2021. "Implementation of strategic cost management in manufacturing companies: overcoming costs stickiness and increasing corporate sustainability," Future Business Journal, Springer, vol. 7(1), pages 1-8, December.
    2. Qais Yaser Saleh & Munther Barakat AL-Nimer & Sinan S. Abbadi, 2023. "The quality of cost accounting systems in manufacturing firms: A literature review," Cogent Business & Management, Taylor & Francis Journals, vol. 10(1), pages 2209980-220, December.
    3. Nina Edh Mirzaei & Per Hilletofth & Rudrajeet Pal, 2021. "Challenges to competitive manufacturing in high-cost environments: checklist and insights from Swedish manufacturing firms," Operations Management Research, Springer, vol. 14(3), pages 272-292, December.
    4. Paolo Roffia & María Mar Benavides & Augustin Carrilero, 2024. "Cost accounting practices in SMEs: liability of age and other factors that hinder or burst its implementation in turbulent years," International Entrepreneurship and Management Journal, Springer, vol. 20(1), pages 115-139, March.
    5. Abriham Ebabu Engidaw, 2021. "The effect of motivation on employee engagement in public sectors: in the case of North Wollo zone," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-15, December.
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