Purpose: This study aimed to examine the effect of applying the target cost approach on product structure in industrial public shareholding companies in Jordan. Theoretical framework: The purpose of applying target cost approach on products' structure (products pricing, development and quality) and it is ability to reduce costs and improvements that can be obtained in the process of applying target cost approach. Numerous research related to applying target cost approach have been conducted, with the majority focusing on large companies. However, Jordanian industrial companies have limitations compared to large companies. Repairability is considered for cost optimization. Design/methodology/approach: The study uses the analytical approach through the study tool (Questionnaire). The study population consisted of Jordanian industrial companies, which reached (56) companies in 2022, according to the monthly statistical periodical of the Amman Stock Exchange (ASE). A sample of (42) companies was selected, and the questionnaire was distributed to (The Financial Manager, Production Manager, Sales Manager, and Accountant) for each company. The number of questionnaires approved for statistical analysis was (130), representing (77%) of the distributed questionnaires. This study uses different tests to analyze the data and extract results related to the statistical methods, i.e., the descriptive statistic, Cronbach's Alpha Equation, Pearson's Correlation Coefficient, and Simple Linear Regression Analysis. Findings: The study found that there is a strong relationship between the target cost approach and the product structure, with the existence of a statistically-significant effect, whereas the correlation coefficient value reached (0.808); thus, the target cost approach contributes to developing products and improving profitability through focusing on the analysis process of the possibilities of product success, before allocating the productive resources thereof. It has also contributed to reducing the cost during the production stages from its beginning while maintaining the products' quality, and it also leads to increasing sales volume through the pricing mechanism based on the target cost. Through the answers of the study sample individuals, it is pointed out that the arithmetic mean of the target cost approach is high, as it reached (3.77) and the standard deviation is (0.57), as well as the arithmetic means of the products' structure is high, as the pricing element came in the first class, with arithmetic means of (3.86) and standard deviation of (0.51), then the development element came in the second class, with arithmetic means of (3.78) and standard deviation of (0.58), whereas the quality element came in the third-class, with arithmetic means of (3.75) and standard deviation of (0.53). The results of the regression analysis also indicate that there is a statistically significant effect of the target cost approach on the quality of products, with (R²) (46.3%) which represents the proportion of explanation in the variance of the dependent variable. The findings of the study highlighted that there is a statistically-significant effect of the target cost approach in product development with (R²) with (37.5%) which indicates that the target cost explains (37.5%) of the difference in the product development. The results also indicate that there is a statistically significant effect of the target cost approach in product pricing with R) value indicating a high-strength correlation between the target cost approach and product pricing, which is (0.812). Research Practical implications: It is necessary to pay attention to qualifying workers by developing programs that deal profoundly with the approachs and modern systems of costs, such as the target cost system and the value chain as these approachs and accounting systems will be intensively adopted in the future for their outstanding role in developing product performance, Pricing and improving its quality. Originality/value: The study recommended that it is necessary to develop successful products and price them based on the target cost by balancing the company's ability and customers' needs, as well as using methods that lead to consistency and harmony between products' quality and customers' expectations. The study also recommended focusing on qualifying workers by developing programs that profoundly tackle the approaches and modern systems of costs, such as the target costing system
This study aimed at identifying the relationship between target costing method in product pricing, as well as identify the relationship of target costing in products development in industrial companies operating at Al-Hassan industrial zone located in Irbid. The population of this study was 51 companies which implement the target costing method. Out of those 51 companies, 35 companies were randomly chosen to participate in this study. The questionnaire has been prepared and distributed to financial managers, production managers, marketing managers, and accountants, where each company got 4 questionnaires. One sample T-test in SPSS was used to examine the hypotheses of this study. The results revealed that the application of target costing method leads to pricing products, as well as that the application of target costing system leads to the development of products in industrial companies operating at Al-Hassan industrial zone.
The study aimed to identify the degree of participation on the part of the public industrial joint stock companies in Jordan in activities related to social responsibility accounting, and to get to know the bases of applying it. To achieve the purpose of the study, the two researchers designed a questionnaire and distributed it to the financial managers and accountants in the public industrial joint stock companies in Jordan included in Amman financial market during the month of May, 2013. The number of these managers and accountants was 81. Two questionnaires were assigned for each company, so the number of questionnaires which were used for analytical purposes was 98. (49 companies ×2). The study showed that these companies did participate in the activities connected with the aspects of social responsibility accounting by using measures for applying them. However, these aspects of accounting were not given the same amount of attention. For example, priority was given to the quality of products and the protection of consumers; next came human resources and environment, while the local community came last. In addition, the act of disclosing social responsibility often takes the form of descriptive report within the framework of the annual financial reports.The study suggested that a joint accounting model for social responsibility be designed where the elements of social activities are ordered according to their importance and disclosed. The study also stressed the need to develop a style for displaying financial lists that reveals bases and detailed information about social performance, and the social activities performed by industrial companies.
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