The Rule of Activating Cost Accounting Systems in Improving the Performance of Jordanian Industrial Companies

Abstract

One of the most important aspects of this research is the operational and administrative efficiency in designing and applying modern cost Accounting Systems , in order to keep pace with the development in manufacturing environment, the strategic , tactical , and operational decisions will be made .Mainly , this research shows the difference between traditional cost and modern cost systems , because traditional cost system does not provide administrations with qualitative and quantitative information , in order to make critical decisions . Moreover , this research was conducted to find a modern cost accounting system in applying  modern production systems , in order to consider ABC System as an integrated system that enhances performance , as well as reducing expenditure .Therefore , Applying ABC System helps accountants to develop cost systems , besides achieving efficient  and effectives performance , and helps the planners in policy formulation , in addition to improve pricing policy and collecting the data for preparing financial statements  , moreover determining the standards of supervision . This research also shows the advantages of applying ABC System as an administrative system , instead of a cost accounting system .