Measuring the Impact of Using Cost Accounting System Based on Activity- to Improve Financial Performance. in Industrial Companies

This study is intended to shed light on the extent to which the activity-based cost accounting system used by the industrial joint-stock companies in the Jordanian environment has been used as one of the most recent accounting and management developments in many powerful and influential international companies. The system will raise the competitive edge, productivity efficiency and continuous improvement of quality, reducing costs for both industrial and service companies. The aim of the study examined whether the use of the activity-based cost accounting system had an impact on improving the financial performance of the company. The researcher used the method of comprehensive survey of the statistical society of the study of all Jordanian industrial joint stock companies and through the distribution of questionnaires to the companies using the active cost accounting system of 15 companies. As for financial performance, its indicators were obtained from the ASE and SDC for the period from 2005 to 2009. The researcher used two types of statistical methods: Descriptive statistical method to show the characteristics of the composition of the study, and analytical statistical method through appropriate analysis to the nature of the study. The results of the study showed that there is a statistically significant relationship between the basic elements of the application of the cost accounting system based on the combined activity and the circumstances of the success of the industrial joint stock companies. The results also showed that there is no effect on the application of the basic components of cost-based activity accounting system to improve performance Financial institutions of industrial companies. In the light of the results of the study, the researcher recommends that companies seeking to use the activity-based cost accounting system should plan for feasibility by studying the conditions of enabling success that represent the fundamentals and reasons for using the system