The Impact of Applying Time Driven Activity-Based Costing on Improving the Efficiency of Performance in Jordanian Industrial Corporations: A Survey Study

Abstract

The paper explored the impact of applying the time driven activity-based costing-TDABC- model (independent variables) on improving the efficiency of performance (dependent variables) in Jordanian industrial corporations. Based on a questionnaire form data from a sample of 73 participants at different managerial positions, from 30 industrial corporations listed in Amman stock exchange (ASE), were gathered and processed using the statistical package of social sciences. The main results showed that there are significant impacts of applying TDABC on improving the efficiency of performance in Jordanian industrial corporations. The main conclusion indicated that TDABC has the ability to benefit from technological developments on the basis of the activities’ charts and reflected on pricing decision making processes in industrial corporations. The research also concluded that senior management and cost accountants of the sample studied did not desire in the short run to change the current cost accounting system due to the additional costs of using the new cost accounting system. The study recommended the application of TDABC in corporations where their operations relied on TDABC’s constituents as proved its impact on reducing costs of products and increasing corporations profitability.