The influence of Company Characteristics Factors to Activity Based Costing System Implementation

Abstract

This study tried to determine the implementation of activity based costing system rate and to examine the relationship between company characteristics such as industry type, numbers of employees, numbers of products, and level of overhead and ABC implementation. The findings revealed that ABC implementation in the context of Jordanian Manufacturing Companies is approximately 19.5% measured according to the number of implementers companies within Jordanian Manufacturing Companies. In order to test hypotheses Logistic regression and chi-square used in the current study. The findings in this study reveals that company sectors, size - number of employees, diversity -number of product, and level of overhead cost don’t have significant influence on the implementation of ABC among manufacturing shareholding firms in Jordan. Therefore hypotheses H1a, H1b, H1c, H2, H3, and H4 are rejected.

Activity-Based Costing (ABC) in the Manufacturing Industry: A Literature Review

“…ABC would have to change its process, which is hard and Lacks software. Rbaba'h (2013) examined the link between industry type, number of people, number of goods, overhead level, and ABC adoption. ABC adoption in Jordanian Manufacturing Companies is 19.5%, based on the number of implementers.…”