The Impact of Strategic Costing Techniques on the Performance of Jordanian Listed Manufacturing Companies

Abstract

This study provides an effort to present strategic costing techniques as a group in the context of SMA literature, where these techniques were primarily studied separately in the past. The study examines the impact of using strategic costing techniques on Jordanian Listed Manufacturing Companies (JLMC) and to examine the impact of these techniques on the performance of these companies. A survey on JLMC was conducted for data collection. A total of 91 questionnaires were distributed to these companies. Out of this number, only 60 were returned.  The response rate was about 65.9%. Descriptive statistics studies showed that JLMC achieved better performance compared to the period before adopting strategic costing techniques. One-sample t-test showed that all of strategic costing techniques were used by JLMC. The results of multiple regressions showed that these techniques contribute significantly and explain a high percentage of variation of JLMCs' performance. Three of explanatory variables were ABC, TC, and COQ have a statistically significant positive effect on JLMC's overall performance, financial performance, and market performance. The rest of explanatory variables which were attribute costing, LCC, and VCC did not have a statistically significant effect on the mentioned categories of performance of JLMC. Regarding the production performance of JLMC, it has been found that all of explanatory variables except attribute costing technique have a statistically significant positive effect on this category of performance. In respect to the limited studies about the relationship between strategic costing techniques as group and firm performance, this study recommends researchers conduct more studies on this subject. The study also recommends JLMC continue adopting all of SMA techniques in the future. 

Keywords: Strategic management accounting, strategic costing techniques, ABC, TC, attribute costing, LCC, COQ, VCC, firm performance.