The effect of applying activity based costing system on net cash flows in industrial companies in Jordan

Other Title(s)

أثر تطبيق نظام التكاليف المبني على الأنشطة على صافي التدفقات النقدية في الشركات الصناعية في الأردن

Dissertant

al-Qumbarji, Riyad Ahmad Muhammad

Thesis advisor

Shubita, Muhamad Fawzi

Comitee Members

al-Khuri, Abir
al-Abbadi, Haytham Mahmud

University

Amman Arab University

Faculty

College of Business

Department

Department of Accounting

University Country

Jordan

Degree

Master

Degree Date

2017

English Abstract

Activity based costing system is considered the most important costing topic at this time due to its impact on the decision taken by decision makers in the manufacturing companies which represents the biggest portion on the Jordanian sector.

Too many studies have showed the importance and usefulness for applying this system.

This study aimed to show the effect of applying activity based costing system on the net cash flow (operating, investing and financing) in manufacturing companies in Jordan To achieve the objective of this study, descriptive analytical method has been conducted.

The study population consisted of employees in the manufacturing companies totalling of 87 male and females.

Surveys have been distributed to 8 manufacturing companies The sample unit consisted of (finance managers, chief accountants, and accountants), 100 surveys Were collected back in addition, financial statements have been analysed for the years 2011-2015 in order to test hypothesis and describe the relationship between variables using the statistical software SPSS.

The results revealed that:  There is A statistically significant result at (?=0.05) for the effect of the activity based costing system (ABC) on the net cash flow (operating cash flow activities, investing cash flow activities and financing cash flow activities) in manufacturing companies in Jordan.

 According to results of the tests that there is no statistically significant result at (?=0.05) for the effect of the activity based costing system (ABC) on the net operating cash flow in manufacturing companies in Jordan.

 According to results of the tests that there is a statistically significant result at (?=0.05) for the effect of the activity based costing system (ABC) on the net investing cash flow in manufacturing companies in Jordan.

 According to results of the tests that there is no statistically significant result (?=0.05) for the effect of the activity based costing system (ABC) on the net financing cash flow in manufacturing companies in Jordan.

Based on research findings the researcher gave several recommendations: 1) encouraging decision makers in manufacturing companies in Jordan to improve the new standards that serves the activity based costing system that helps the management to take the proper decision.

2) Train and prepare the people who are dealing with activity based costing system and develop their skills to have the maximum use of applying activity based costing system.

Main Subjects

Financial and Accounting Sciences

Topics

• Cost accounting
• Industrial enterprises
• Jordan
• Cash flow

No. of Pages

64

Table of Contents

• APA
• MLA
• AMA

Language

English

Data Type

Arab Theses

Record ID

BIM-763720