The Effect of Activity based Costing (ABC) System on the Corporate Pricing Decisions in the Jordanian Industrial Sector

The Effect of Activity based Costing (ABC) System on the Corporate Pricing Decisions in the Jordanian Industrial Sector

Ibrahim Al-Nahoud

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Dr. Tareq Bani-Khalid

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α Al al-Bayt University

The Effect of Activity based Costing (ABC) System on the Corporate Pricing Decisions in the Jordanian Industrial Sector

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Abstract

This paper aims to examine the effect of Activity Based Costing (ABC) system on corporate pricing decisions of the Jordanian industrial shareholding companies. Specifically, this paper aims at examining the effect of ABC system on corporate pricing decision. These decisions include: (i) setting the initial price, (ii)determining discounts, (iii)setting the final price and (ix) decision on competitive pricing analysis. Drawing from quantitative research methodology, a questionnaire was developed as the main tool for data collection, which included a sample of (352) employees in the Jordanian industrial shareholding companies. Using the linear regression model, we model the relationship between ABC system and the sub-variables of pricing decisions via the multiple linear estimations. The results from this model refer that there was significant (α ≤ 0.05) effect of ABC system on the pricing decisions of the Jordanian industrial companies, with a high degree of statistical significance of the variable of raising employee awareness on the importance of ABC on all independent variables of corporate pricing decisions.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Not applicable for this article.

How to Cite This Article

Ibrahim Al-Nahoud. 2019. \u201cThe Effect of Activity based Costing (ABC) System on the Corporate Pricing Decisions in the Jordanian Industrial Sector\u201d. Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 19 (GJMBR Volume 19 Issue D2): .

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GJMBR Volume 19 Issue D2
Pg. 59- 67

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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Classification

GJMBR-D Classification: JEL Code: M40

Submission ReceivedDecember 9, 2018
Peer Review Double Blind
Handling Editor
Accepted January 2, 2019
Published January 15, 2019

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v1.2

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May 9, 2019

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Article Matrices

Total Score: 107

Country: Jordan

Subject: Global Journal of Management and Business Research - D: Accounting & Auditing

Authors: Ibrahim Al-Nahoud, Dr. Tareq Bani-Khalid (PhD/Dr. count: 1)

View Count (all-time): 187

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Publish Date: 2019 05, Thu

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