THE MEDIATING IMPACT OF TARGET COSTING IN THE RELATIONSHIP BETWEEN INFORMATION AND PRODUCTS QUALITY

Abstract

Modern management accounting methods have grown rapidly and will become one of a catalyst for the country's industrial and economic growth of Jordan. Although it has become one of the most common accounting methods in Europe, its adoption in Jordan remains low. With a high percentage of Jordanian industrial companies seeking to keep pace with development. Thus, many modern methods of managerial accounting have emerged, and one of which is the target cost (TC) method.  The target cost method is a cost management approach that is based on demand-driven production because it focuses on customer requirements for quality, cost and time. Jordan began emphasizing the application of target costs as an appropriate method in the production process to achieve high-quality products at reasonable prices. The main objective of this study is to gauge the role of information and targeted cost method on the quality of products. The quantitative method has been selected with a designed questionnaire involved 282 respondents comprising of the General Managers, Production Manager, Chief Financial Officers, Strategic and Planning Managers, Engineering department Managers and Finance Managers. The results showed that the information have a negative impact on the use of the target cost. The results also showed that the information has a negative impact on improving the quality of products. The results also showed that the targeted cost plays a positive mediating role in the relationship between information and the quality of products. This study has many valuable theoretical and practical contributions. In particular, this research has attempted to ascertain the impact that information has on the target cost and the quality of products. More importantly, therefore, this study has different implications for theory and practice. One of the most important recommendations of the study is to research the factors that affect business supervisors in their use of modern methods of managerial accounting, as this will be a valuable comparative work with the current research that focuses on industrial companies.