The Extent of Implementing Responsibility Accounting Features in the Jordanian Banks
Abstract
This study aims to identify the extent of implementing responsibility accounting in the Jordanian banks. And the data of the study was collected by distributing 55 questionnaires on the sample of the study which represented the employees of the Jordanian banks from different administrative levels as general managers, departments’ managers, the branches’ managers and ordinary employees. Fifty questionnaires were retrieved. After data was analyzed using SPSS, the study concluded that the Jordanian banks commit to the application of the potential responsibility accounting regarding the division of the organizational structure into centers of responsibilities, the authorization the mangers of the responsibility centers with clear powers, the distribution of costs and the revenues to responsibility centers according to the center’s ability and validity, the previous linking of the estimated budgets with the responsibility center, using the budgets for control and the performance evaluation through comparing the actual performance with the planned one for each responsibility center, preparing reports which analysis the deviations of the real performance of the plan, the existence of system of incentives correlated with the results of the responsibility centers but these banks do not commit to some details of these potentials as not every responsibility center perform one type of activity, non-participation of the employees of the responsibility center in preparing the center’s budget according to every one’s work, the reports’ lack of interest of the responsibility center’s performance regarding the non-financial aspects, and the employees’ non-satisfaction of the system of the incentives used in their banks. And the study came up with a number of recommendations as follows: the necessity for the Jordanian banks to involve all the employees who work in the centers of responsibility in setting goals and preparing the estimated budgets of their centers according to every one’s specialization and potentials, the necessity of cooperation between the Central Bank, The Association of Banks and the administrations of the banks in developing a guide to be recommended for application in the Jordanian banks includes the objectives, features and the advantages of using the responsibility accounting, the necessity of the professional associations as the association of banks to encourage the banks to use the other modern methods of the administrative accounting in their business as the application of Activity Based Costing system (ABC), Activity-Based budgeting System (ABB) and the Balance Score card (BSC).
Keywords: Centers of Responsibility, Estimated Budgets, the control, Evaluation of performance, Report of the performance, Responsibility Accounting.
To list your conference here. Please contact the administrator of this platform.
Paper submission email: EJBM@iiste.org
ISSN (Paper)2222-1905 ISSN (Online)2222-2839
Please add our address "contact@iiste.org" into your email contact list.
This journal follows ISO 9001 management standard and licensed under a Creative Commons Attribution 3.0 License.
Copyright © www.iiste.org