The role of accounting information systems in rationalizing pricing decisions : field study in Iraqi textile &sewing companies

Abstract EN

Accounting literature reports that pricing policy in any organization cannot success unless an efficient, accurate, and comprehensive accounting information system is available including cost systems.

However, cost accounting information systems are divers and vary depending on the situation.

The aim of this study is to investigate the ability of the textile and sewing establishments in Iraq to use more efficient accounting methods in forming the pricing policy.

Currently, the majority of these establishments still using the full cost method for this purpose.

The study adopts the empirical method to approach its objectives by choosing (30) organizations to survey.

Questionnaire forms were developed according to the research requirements and distributed on officials concerned in the selected companies with pricing decisions.

Data collected is analyzed using the quantitative and statistical techniques.

The results indicated that the use of other methods of pricing, i.

e., the marginal cost method and the addition ratio method, may offer the organizations better opportunities to utilize from its benefits, evaluate the alternative, lowering the prices and thus attracts more customers, face the competition, and have good market share.

This paper contributes to the literature by providing valid analyzes of all the available accounting methods for pricing especially in the area of cost accounting and suggest many valid recommendations for Iraqi textile and sewing organizations to follow