Table 1 - uploaded by Mohammad Aladwan
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EDUCATION DEGREE FOR THE SAMPLE RESPONDENTS
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The study is aims to investigate the applicability of target costing methodology (TC) in Jordanian hotels industry. To achieve the study objectives the researcher employed a descriptive analytical method using a structured questionnaire addressed to managers in hotels departments such as marketing, accounting, design, research and development. A li...
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The study is aims to investigate the applicability of target costing methodology (TC) in Jordanian hotels industry. To achieve the study objectives the researcher employed a descriptive analytical method using a structured questionnaire addressed to managers in hotels departments such as marketing, accounting, design, research and development. A li...
Citations
... In comparison to other management accounting methods, the adoption of TC in a highly complicated supply chain market necessitates a more coordinated effort. All supply chain participants must look for methods to save costs in the creation, production, and distribution of components (Ellram, 2000;Aladwan et al., 2018;Al-HAshimi, 2020;. ...
... Based on the previous studies, this study was characterized by using the target cost approach so that the product becomes within the consumer's purchasing power, in addition to the extent of its impact on the product structure (development, Pricing, quality) and the contribution to maintaining the company's competitive position and increasing profitability, mainly whereas studies in the industrial field in Jordan, which approached the extent of application of the target cost approach and its impact on the structure of products are very few, so this study is deemed as a scientific addition to previous studies to link this approach to the product structure of development, Pricing, and quality in the industrial public shareholding companies in Jordan (Aladwan et al., 2018). ...
Purpose: This study aimed to examine the effect of applying the target cost approach on product structure in industrial public shareholding companies in Jordan. Theoretical framework: The purpose of applying target cost approach on products' structure (products pricing, development and quality) and it is ability to reduce costs and improvements that can be obtained in the process of applying target cost approach. Numerous research related to applying target cost approach have been conducted, with the majority focusing on large companies. However, Jordanian industrial companies have limitations compared to large companies. Repairability is considered for cost optimization. Design/methodology/approach: The study uses the analytical approach through the study tool (Questionnaire). The study population consisted of Jordanian industrial companies, which reached (56) companies in 2022, according to the monthly statistical periodical of the Amman Stock Exchange (ASE). A sample of (42) companies was selected, and the questionnaire was distributed to (The Financial Manager, Production Manager, Sales Manager, and Accountant) for each company. The number of questionnaires approved for statistical analysis was (130), representing (77%) of the distributed questionnaires. This study uses different tests to analyze the data and extract results related to the statistical methods, i.e., the descriptive statistic, Cronbach's Alpha Equation, Pearson's Correlation Coefficient, and Simple Linear Regression Analysis. Findings: The study found that there is a strong relationship between the target cost approach and the product structure, with the existence of a statistically-significant effect, whereas the correlation coefficient value reached (0.808); thus, the target cost approach contributes to developing products and improving profitability through focusing on the analysis process of the possibilities of product success, before allocating the productive resources thereof. It has also contributed to reducing the cost during the production stages from its beginning while maintaining the products' quality, and it also leads to increasing sales volume through the pricing mechanism based on the target cost. Through the answers of the study sample individuals, it is pointed out that the arithmetic mean of the target cost approach is high, as it reached (3.77) and the standard deviation is (0.57), as well as the arithmetic means of the products' structure is high, as the pricing element came in the first class, with arithmetic means of (3.86) and standard deviation of (0.51), then the development element came in the second class, with arithmetic means of (3.78) and standard deviation of (0.58), whereas the quality element came in the third-class, with arithmetic means of (3.75) and standard deviation of (0.53). The results of the regression analysis also indicate that there is a statistically significant effect of the target cost approach on the quality of products, with (R²) (46.3%) which represents the proportion of explanation in the variance of the dependent variable. The findings of the study highlighted that there is a statistically-significant effect of the target cost approach in product development with (R²) with (37.5%) which indicates that the target cost explains (37.5%) of the difference in the product development. The results also indicate that there is a statistically significant effect of the target cost approach in product pricing with R) value indicating a high-strength correlation between the target cost approach and product pricing, which is (0.812). Research Practical implications: It is necessary to pay attention to qualifying workers by developing programs that deal profoundly with the approachs and modern systems of costs, such as the target cost system and the value chain as these approachs and accounting systems will be intensively adopted in the future for their outstanding role in developing product performance, Pricing and improving its quality. Originality/value: The study recommended that it is necessary to develop successful products and price them based on the target cost by balancing the company's ability and customers' needs, as well as using methods that lead to consistency and harmony between products' quality and customers' expectations. The study also recommended focusing on qualifying workers by developing programs that profoundly tackle the approaches and modern systems of costs, such as the target costing system
... Note, they are based on financial and non-financial measures and a long-term view (Faria et al. 2018a). Several authors argue that contemporary practices have more advantages than traditional ones and indicate as examples: identifying opportunities; improving service and customer experience (Lunkes et al. 2020); promoting teamwork; recognizing responsibilities in cost management; and increasing skills in new management costing methods, among others (Aladwan et al. 2018). Revenue, also considered an MA practice, aims to increase a hotel's revenue, and allows for stricter cost control (Bastos 2022). ...
Background: Despite the increase in tourism revenues, management in the hospitality industry faces constant challenges for profit maximization. In this way, the aim of this study is to analyze management accounting (MA) research applied to the Portuguese hospitality industry, identifying all the practices mentioned by authors studying the same theme in the rest of the world. Methods: fifty-two studies were obtained and used between 2010 and 2021 for data assessment through bibliometric review, which involved both quantitative and qualitative methods of analysis. To achieve the objectives, studies were selected according to the MA practices identified by several authors for the global hospitality industry. Results: the results highlight the importance of increasing research on MA practices in the hospitality industry to empower management and smooth out the differences between their use. Currently, the emphasis is on hotel ratios and indicators, budgeting, and benchmarking. Conclusions: The adoption of MA practices is decisive for the success of hotel companies. This study evidenced the increasing use of some hotel MA practices over the years and made it possible to assess the development of these practices in Portugal, since to date no other author has produced a bibliometric review on this topic.
... Potkány et al. (2012) investigated customer preferences of simple woodbased houses for the purpose of using the target costing. Other examples of the use of the Target Costing methodology can be seen in hotel management (Aladwan et al., 2018), the agriculture sector (Lima et al., 2016), and healthcare facilities (Macuda and Orliński, 2017). Johansen et al. (2021) focused on large and complex infrastructure projects in the context of the Norwegian construction industry. ...
The paper concerns the practical application of Target Costing to a specific product of the woodworking industry with a particular emphasis on customer needs and value analysis principles concerning individual components and functions of the product — a wood-aluminium window Gemini Quadrat FB. Based on principles of value analyses, the study used the functional cost analysis, the quantified target cost index of relevant components and the target cost chart for the allowable cost of components. Two levels of the q parameter — 5 % and 10 % — were used to construct the target cost chart. The target price (EUR 513.19) was assessed. The target production cost was at the level of allowable production costs (EUR 379.31). The results were used to confirm that the ideal value of the target cost index was not achieved for any component, and a higher value of the parameter q can be marked as soft. The paper provides assumptions for the assessment of possible alternatives and potential corrections. The case study presents the description of the Target Costing methodology along with the nuanced characteristics of the approaches used by various authors and the strengths and benefits of using the method.
... Aladwan et al. [17] have been trying to apply a TC methodology in the eld of hotel management, Lima et al. [18] in the agriculture sector and Macuda and Orliński [19] in the eld of healthcare facilities. Many results can also be found in other industries [20,21]. ...
The purpose of this paper is to present the results of a research into the customer preferences of potential buyers of simple wood-based house for the purpose of using the Target Costing methodology. Respondents’ opinions of 280 customers were obtained through direct interviews taking place at a specialized exhibition of furniture and timber constructions in Slovakia. The object of the research was a simple wood-based house, namely a weekend garden cottage, made of northern spruce at the level of target price 9,320 €. The paper contribution is represented by the use of the Target Costing methodology in the conditions of wood-processing industry while defining the customer preference for a specific product with the subsequent use for a functional cost analysis and determining the target cost index of the evaluated components. Presented results can be used as information database for decision making in the field of make or buy decisions at the level of fixed purchase prices of individual components or as the upper price limit for producing the components by the business itself.
... In this research, the statistical population includes firms listed in ASE over the time period of 1978-2016, a complete 38 years of time series data for 266 firms listed firms in ASE; because of variations in the number of listed companies from a year to year, we have used average earning per share(EPS) as a proxy to the firms' earning, EPS is considered as summary indicator that explain the firms' performance in term of profitability (Schroeder et al., 2009;Aladwan et al., 2018). The time series data were accessed from the ASE and extracted from firms annual financial reports. ...
The study aims to estimate and forecast earnings of the firms listed in Amman Stock exchange (ASE) using a time series data of earning per share (EPS) for the period from 1978 till 2016. The data has been extracted from firms' annual reports. A wavelet Transform (WT) decomposes the data and detects the fluctuations and outlay values. The parameters p, d, and q are estimated using the ARIMA model, the results show that the ARIMA models accuracy criteria MASE and RSME have the lowest values (0.7089 and 0.0709) respectively, thus the forecasting accuracy is high. It is concluded that firms' earnings show slow increasing trend for the upcoming 38 financial years.
... Recent convergence in accounting standards could provide direction and guidance on how business enterprises in a globalized world could achieve the goal of proper record keeping, transparency, uniformity, comparability and enhancing public confidence in financial reporting (McCarthy and McCarthy, 2014). Moreover, the failure for such global convergence according to Altamuro et al (2005) would result in inconsistencies, lack of accountability and transparency, distortion in financial reports, which in turn results into poor financial reporting practices and dissemination of accounting information that is of less value to any particular group of users (Zang, 2012;Aladwan et al., 2018). Revenue is regarded as a type of income that arises in the course of ordinary activities of an entity and is referred to by a variety of different names including sales, fees, interest, dividends and royalties. ...
The adoption of International Financial Reporting Standards (IFRS) around the world is gaining popularity and Jordan not being an exception. This adoption brings about improvement in accountability and quality of accounting Information through a uniform set of standards for financial reporting. The objective of this paper is to examine whether the early adoption of IFRS 15 that supersede the International Accounting Standards (IAS) 18 concerning revenue recognition has effected Jordanian companies revenue levels and the value of stock price or not. The paper measures revenue and stock prices pre and post the IFRS 15 implementation. Two hypotheses was developed and tested at five (5) percent level of significance. The findings revealed that there is significance quantitative difference between the arithmetic means for both of revenue and stock price pre and post the standard application. Further, the results of the study provided conclusive evidence that IFRS 15 have impacted on accountability and quality of information that reported in financial statement for Jordanian mining, construction and engineering companies. © 2019 Forum-Editrice Universitaria Udinese SRL. All Rights Reserved.
The research aims to clarify the knowledge foundations of the green target cost technologies and reverse engineering and to clarify their role in reducing costs. It also aims to use the two technologies in the research sample company and to indicate their role in reducing costs. The deductive approach was used in the theoretical side of the research and the inductive approach in the practical side, and the researcher reached a set of conclusions, the most important of which are: The green target costing technique is a useful tool to help determine the allowable cost of the product because customers are often unwilling to bear additional purchase costs for products and in light of The conclusions that have been reached, the researcher presented a set of recommendations, the most important of which are: The economic unit, the research sample, must seek to know the details and components of competing products in order to be able to develop its products in line with the capabilities of the competing product.
İşletmelerde özellikle hayati kararların alınmasında maliyet
olgusunun büyük bir önem taşıması, zaman içerisinde sürekli bir biçimde
değişen teknoloji ve rekabet olgusu ile birleşerek işletmeleri maliyetlerin
altında yatan etkenleri detaylı biçimde incelemeye itmiştir. Zaman içerisinde
değişen müşteri istek ve ihtiyaçları işletmeleri daha kaliteli ürün ve
hizmetleri daha düşük maliyetlerle üreterek sunmaya zorlamıştır. Bu yoğun
rekabet ortamında işletmeler varlıklarını devamlı kılabilmek için değişen
koşullara adapte olarak, artık yetersiz kaldığını anladıkları geleneksel
maliyet yönetimi uygulamalarından vazgeçerek, çağdaş maliyet yönetim
tekniklerine yönelmişlerdir. Bahsi geçen teknolojilerin verimli
biçimdekullanılabilmesi için geliştirilmiş olan toplam kalite yaklaşımı, altı
sigma, benchmarking gibi çağdaş teknikler işletmeler tarafından
uygulanmaya başlanmıştır.
‘‘Çağdaş Maliyet Yönetim Teknikleri ve Uygulamaları’’ isimli bu
kitapta çağdaş maliyet yönetim teknikleri ile bu tekniklerin küresel ve ulusal
çaptaki uygulamalarına yer verilmiştir.
Esta pesquisa tem por objetivo investigar a adoção de práticas do processo de target costing por empresas do setor de serviços de TIC – Tecnologia da Informação e Comunicação. Para isso, foi elaborada uma revisão da literatura acerca do target costing – conceito, objetivo, princípios e etapas do seu processo. Foi realizado um survey, com o uso de um questionário online padronizado e estruturado, com as empresas associadas à ASSESPRO (Associações das Empresas Brasileiras de Tecnologia da Informação). Os dados foram analisados por meio da estatística descritiva. Os resultados encontrados evidenciam que as empresas participantes são empresas de pequeno e médio portes e baixa complexidade organizacional. No geral, os achados demonstram que as empresas investigadas fazem uso de práticas do processo de target costing, sobretudo de práticas das etapas iniciais do processo: etapa de definição das características dos produtos/serviços e da etapa definição da margem de lucro e estimação do custo alvo dos produtos/serviços. Apesar das práticas das etapas seguintes do processo de target costing (atividades de gerenciamento de custos e atividades de melhoria contínua) também apresentarem altos números de frequência, os resultados sugerem que as empresas investigadas precisam melhorar nesse aspecto.
