The Extent Use of Contemporary Management Accounting Practices and Its Effect on Operational Performance of Industrial Corporations in Jordan

Abstract

The purpose and aims of this study is to illustrate the extent use of contemporary management accounting practices MAPs in the Jordanian industrial corporations listed on Amman Stock Exchange ASE, and an attempt to find out the most common practice used. A field study conducted by using a questionnaire distributed to accountants working in 25 different industrial corporations, a total of 75 questionnaires distributed, 52 were valid for analysis purposes. The financial data related to the operational performance were collected for the periods 2013-2016. The study used arithmetic mean and standard deviation to describe the study sample and determine degree of implementation of contemporary MAPs.Multiple regression analysis used to detect the effect of MAPs on each indicator of operational performance.

Results of the study showed a moderate use of contemporary MAPs, such as Target costing, Kaizen costing and Just-in-time manufacturing, moreover a least used practices were Activity base costing and Balance scorecard, and analysis revealed a different effect of applied contemporary MAPs on operational performance indicators, an effects on inventory turnover rate is observed, and no statistically effect on operational ratio, receivables turnover and total assets turnover. Worthwhile, the researcher proposed a number of proposals and recommendations, emphasis in reconsideration of application mechanism of contemporary MAPs applied in the corporations, and activate the role of various contemporary MAPs used as an information system, which could assess the corporate managers and decision-makers serving the management's objectives in the industrial corporations.