Cost accounting systems structure and information quality properties: an empirical analysis

Abstract

PurposeThis paper aims to explore the relationships among cost accounting systems structure and information quality properties through an integrated framework of cost system design and use.Design/methodology/approachIn the framework, cost accounting systems structure is defined in terms of the level of detailed information existence, the cost disaggregation according to behaviour, the scope of variances calculation and the frequency of cost information provision. Cost information quality expresses its perceived usefulness by the users in terms of relevance, accuracy, timeliness, usability, compatibility with their needs, up‐to‐datedness, reliability and thoroughness for decision‐making purposes. In order to investigate the existing relationships, data were gathered from 119 leading Greek manufacturing companies via a questionnaire survey.FindingsThe empirical findings indicate that the majority of cost accounting systems structure characteristics exert a statistically significant positive influence on cost information quality dimensions. Only the systems' ability to disaggregate costs according to behaviour and their capability to generate customized to user specifications reports were not found to be statistically significantly associated with information quality.Research limitations/implicationsThe authors believe that their conclusions have important implications for researchers and professionals with respect to cost systems design as well as cost systems evaluation.Originality/valueThe innovation of the study lies in the development of an integrated framework that encompasses both cost systems structure characteristics and cost information effectiveness features.

What makes accounting information timely?

“…daily reports, weekly reports”. Similar definitions of timeliness are seen in a range of later studies, for example, Bouwens and Abernethy (2000), Chang et al (2003) and Cohen and Kaimenaki (2011).…”

Strategic cost management and performance: The case of environmental costs

“…Thirdly, although various claims have been made promoting the benefits of SCM (Aluko, Mayhall, Wauquiez, & Vercio, 2010;Cooper & Slagmulder, 2003;Freeman, 1998;Wong, 1996), and despite the empirical investigation of the impact of executional cost management activities on the effectiveness of cost management systems (Cohen & Kaimenaki, 2011;Hughes & Paulson Gjerde, 2003;Nicolaou, 2003;Schoute, 2009), limited empirical evidence has been provided to support the impact of SCM on financial performance. More specifically, in the executional cost management literature, the empirical evidence supporting the link between cost-system design and financial performance is limited and conflicting (Lee, 2003;Pizzini, 2006).…”

Pelatihan Peningkatan Kualitas Produk dan Pemasaran Usaha Bubuk Biji Salak di Desa Sungai Langka, Kabupaten Pesawaran

“…Nilai guna biji salak menjadi meningkat dan bermanfaat sebagai produk minuman kesehatan. Proses produksi ini memerlukan laporan biaya produksi yang akurat agar menjadi sumber informasi yang berkualitas bagi pengelolaan produksi dan keuangan usaha ini, karena struktur akuntansi biaya berhubungan dengan kualitas informasi (Cohen & Kaimenaki, 2011). Disamping itu, informasi biaya yang berkualitas sangat dibutuhkan untuk pengambilan keputusan (Atkinson et al, 2011).…”