The Determinants of Adding Non-Production Costs When Calculating Product Costs: Evidence from the Saudi Industrial Sector

Aljabr, Abdulrahman

doi:10.18488/5002.v12i2.4414

Cited by 3 publications

(1 citation statement)

References 33 publications

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“…Contingency theory suggests that no optimal CSD exists to suit all organizations; rather, the optimal CSD is determined by the surrounding context, represented by factors such as PC, IndirectCosts, COMP and IT quality (Aljabr, 2020;Burkert et al, 2014). The relationship between each of the contextual factors of PC, IndirectCosts, Drury, 2007;Aljabr, 2020Aljabr, , 2021Aljabr, , 2022Cooper, 1988;Drury & Tayles, 2005)). The existing literature suggests that the costs of error-related factors, i.e., PC, IndirectCosts and COMP, positively impact ABC adoption and CSC (Drury & Tayles, 2005;Kaplan & Cooper, 1998).…”

Section: The Effect Of the Contextual Factorsmentioning

confidence: 99%

The impact of contextual factors on costing system design: The moderating role of facilitator factors

Aljabr

2023

5002

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Achieving optimal performance is partially conditioned by aligning the costing system design (CSD) with the context’s requirements. Research on the relationship between the context and CSD has produced inconsistent results, which has prompted research on the moderating role of various factors in this relationship. An omission by this research is the moderating impact of factors that play a facilitating role in obtaining the intended CSD. Hence, this research employs the contingency theory to investigate the moderating impact of various facilitators, including top management support (TMS), organizational culture, and the availability of resources to invest in the costing system, on the relationship between the context and CSD. This research utilizes a questionnaire survey to gather data from Saudi manufacturing businesses and analyzes the data using a moderated regression analysis (MRA). The results did not support the moderating influence of facilitator factors, which may be related to the characteristics of the Saudi context and/or the measures adopted. However, the results revealed interesting findings regarding the direct effects of facilitator and contextual factors on CSD. This research provides manufacturing industry practitioners with important insights regarding the facilitating role of multiple factors in the design and implementation of costing systems that are compatible with the context.

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Section: The Effect Of the Contextual Factorsmentioning

confidence: 99%

The impact of contextual factors on costing system design: The moderating role of facilitator factors

Aljabr

2023

5002

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The relationship between the role of management accountants, advanced manufacturing technologies, cost system sophistication and performance: a path model

Banhmeid

Aljabr

2023

JFRA

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Purpose This paper aims to test a contingency-based path model that concurrently links the role of management accountants (MA) and advanced manufacturing technologies (AMTs) to cost system sophistication (CSS), as well as linking the latter to improvements in organisational performance through improving cost management and product planning decisions. Design/methodology/approach This paper used the questionnaire survey strategy to collect data from 373 medium and large manufacturing business units based in the UK, then subjected the data to structural equation modelling analysis to test a contingency-based path model. Findings The results show that the role of MAs and AMTs positively influence CSS. Moreover, it was found that the latter is positively associated with improvements in cost management decisions which, in turn, lead to improvements in organisational performance. However, no support was found for the association between the level of CSS and improvements in product planning decisions, although the latter was found to be positively associated with organisational performance. These results confirm the theory and empirical findings regarding the role that MAs and AMTs play in designing the cost accounting system, and support the argument that adopting sophisticated cost systems does not lead directly to improvements in organisational performance, unless the benefits of such systems, in terms of improved decision-making and cost applications, are used. Originality/value This research contributes to the literature by testing a contingency-based path model that incorporates hitherto underexamined contextual factors, namely, the role of MAs and AMTs; examining the effect of CSS on a critical output, organisational performance and the mechanisms of this effect; and considering the complexity of the business environments through the concurrent testing of the relationships involved in the research model.

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Development of a Quality Deterioration Index for Sustainable Quality Management in High-Tech Electronics Manufacturing

Fridkin,

Winokur,

Gamliel

2024

Sustainability

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In high-tech electronics manufacturing, non-quality costs significantly impact organizational profitability and competitiveness. This case study introduces a novel Quality Deterioration Index (QDI) to systematically identify and prioritize root causes of non-quality costs within a leading electronics manufacturer. The primary objective is to integrate sustainable quality management practices that align with green sustainability objectives, such as reducing electronic waste, improving energy efficiency, and minimizing hazardous materials usage. Our comprehensive methodology encompasses a literature review, interviews, document analysis, and statistical analysis of survey data to uncover the influence of procedural, cultural, and environmental factors on quality deviations. The key findings reveal critical areas for improvement, particularly in supply chain inefficiencies, workforce challenges, and procedural gaps. By employing the QDI, we provide a structured framework that enhances both operational efficiency and environmental performance. The novelty of this research lies in its dual approach to simultaneously address economic and environmental performance, offering actionable insights for manufacturers aiming to integrate robust quality management systems with sustainability objectives. This study contributes to the ongoing dialogue on sustainable manufacturing strategies, underscoring the pivotal role of quality management in achieving both economic viability and environmental stewardship. Future research should expand this approach across various industries and global contexts to validate and refine the integration of quality management and sustainability.

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The Determinants of Adding Non-Production Costs When Calculating Product Costs: Evidence from the Saudi Industrial Sector

Cited by 3 publications

References 33 publications

The impact of contextual factors on costing system design: The moderating role of facilitator factors

The impact of contextual factors on costing system design: The moderating role of facilitator factors

The relationship between the role of management accountants, advanced manufacturing technologies, cost system sophistication and performance: a path model

Development of a Quality Deterioration Index for Sustainable Quality Management in High-Tech Electronics Manufacturing

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