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The influence of Company Characteristics Factors to Activity Based Costing System Implementation


  • Abedalqader Rbaba’h


This study tried to determine the implementation of activity based costing system rate and to examine the relationship between company characteristics such as industry type, numbers of employees, numbers of products, and level of overhead and ABC implementation. The findings revealed that ABC implementation in the context of Jordanian Manufacturing Companies is approximately 19.5% measured according to the number of implementers companies within Jordanian Manufacturing Companies. In order to test hypotheses Logistic regression and chi-square used in the current study. The findings in this study reveals that company sectors, size - number of employees, diversity -number of product, and level of overhead cost don’t have significant influence on the implementation of ABC among manufacturing shareholding firms in Jordan. Therefore hypotheses H1a, H1b, H1c, H2, H3, and H4 are rejected.

Suggested Citation

  • Abedalqader Rbaba’h, 2013. "The influence of Company Characteristics Factors to Activity Based Costing System Implementation," Journal of Education and Vocational Research, AMH International, vol. 4(2), pages 36-46.
  • Handle: RePEc:rnd:arjevr:v:4:y:2013:i:2:p:36-46
    DOI: 10.22610/jevr.v4i2.99

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    References listed on IDEAS

    1. Taha Ahmadzadeh & Hossien Etemadi & Ahmed Pifeh, 2011. "Exploration of Factors Influencing on Choice the Activity-Based Costing System in Iranian Organizations," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 2(1), pages 61-70, February.
    2. Gosselin, Maurice, 1997. "The effect of strategy and organizational structure on the adoption and implementation of activity-based costing," Accounting, Organizations and Society, Elsevier, vol. 22(2), pages 105-122, February.
    3. Davood Askarany & Malcolm Smith, 2008. "Diffusion of innovation and business size: a longitudinal study of PACIA," Managerial Auditing Journal, Emerald Group Publishing, vol. 23(9), pages 900-916, October.
    4. Kevin Baird & Graeme Harrison & Robert Reeve, 2007. "Success of activity management practices: the influence of organizational and cultural factors," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 47(1), pages 47-67, March.
    5. Jamaliah Abdul Majid & Maliah Sulaiman, 2008. "Implementation of activity based costing in Malaysia," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 16(1), pages 39-55, May.
    6. Malmi, Teemu, 1999. "Activity-based costing diffusion across organizations: an exploratory empirical analysis of Finnish firms," Accounting, Organizations and Society, Elsevier, vol. 24(8), pages 649-672, November.
    7. Husam Aldeen Al-Khadash & Mete Feridun, 2006. "Impact of Strategic Initiatives in Management Accounting on Corporate Financial Performance: Evidence from Amman Stock Exchange," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 4(4), pages 299-312.
    8. David A. Brown & Peter Booth & Francesco Giacobbe, 2004. "Technological and organizational influences on the adoption of activity‐based costing in Australia," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 44(3), pages 329-356, November.
    9. Devinaga Rasiah, 2011. "Why Activity Based Costing (ABC) is still tagging behind the traditional costing in Malaysia?," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 1(1), pages 1-4.
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