Does management accounting mediate the relationship between cost system design and performance?

Ali Uyar and Cemil Kuzey

Advances in accounting, 2016, vol. 35, issue C, 170-176

Abstract: This study aimed at investigating the mediating effect of management accounting practices (MAPs) upon the association between cost system design (CSD) and performance. Covariance-Based Structural Equation Model methodology was applied to investigate the complex relationship between the latent constructs. The findings indicated that cost system design alone does not impact firm performance. However, it affects performance via MAPs. We projected that MAPs play a full mediating role between CSD and performance. Thus, this study indicates that incurring high costs for the establishment of a functional cost system might be justifiable, on condition that the firm will utilize the obtained cost data through various decision-making tools; otherwise there is no point in bearing the cost of building such a system.

Keywords: Cost system; Management accounting; Performance (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:advacc:v:35:y:2016:i:c:p:170-176

DOI: 10.1016/j.adiac.2016.06.004

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