Adoption And Implementation Of Activity Based Costing Systems In Jordanian Manufacturing Companies

Abstract:

The present research attempts to contribute to the design and the successful ABC implementation in the Jordanian manufacturing companies.  To achieve the aim of the research, the research methodology included both quantitative and qualitative data. The questionnaire survey was developed and the primary aims were to determine the current state of ABC adoption and implementation. In the second stage, semi-structured interviews were used to determine the factors influence to ABC adoption and implementation. The analysis of the data was run by using both within company and cross-company analysis. Three criteria were used to determine the adoption and implementation rate of ABC. They are adopters, implementers, and users or implementers.  The main findings indicate that ABC implementation among Jordanian manufacturing companies is about 19.5% based on the third criteria i.e. implementers or users. The results from semi-structured interviews show that fashion, forced decision, fad and efficiency are factors associated directly with the implementation decision in Jordanian manufacturing companies. Following factors namely top management support, non-accounting ownership, higher information technology, education, globalization of consumer, increased competition, growing costs, allocation problems, inability of the traditional cost systems to provide relevant information in the new environment and financial crisis facilitate and motivate the implementation of ABC. Results from semi-structured interviews with 13 companies show that the barriers and problems of ABC relate to behavioral and technical issues.