Product Costing System Assignment
Added on 2020-03-16
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Article Critique 1ARTICLE CRITIQUEBy (Student’s Name)Professor’s NameCollegeCourseDate
Article Critique 2ARTICLE CRITIQUEIntroduction:The main purpose of this study is to identify the factors that explicate the product costingsystem’s content. The study arise from the backdrop that many previous studies have sought outto explain the accounting system diversity by only adopting contingency theory to illustrate howparticular elements of accounting system are linked to a range of contextual factors/variables.However, it is surprising that despite the substantial contingency-oriented studies being carriedout in relation to management accounting control system (MACS), little attention is given toidentify factors explaining the content of product costing system (PCS). It is even furtherastonishing given the enormous amount of public provided to the development of increasinglysophisticated product costing systems. Summary The main objective of the study was to determine the degree to which potential thecontextual factors affect the features of PCS. The method used both adoption/non-adoption ofABC system used in previous studies and alternative proxy measures (APM) for PCS’characteristics identification. The alternative proxy measures enabled the author to examine thedegree to which various contextual factors dictate the choice of the PCS (Al-Omiri and Drury2007)). The main findings demonstrate that higher degree of cost system sophistication (CSS)are positively correlated with significance of cost information, degree of use of additionalinnovative management accounting techniques, competitive environment intensity, size, degreeof JIT/lean production techniques usage as well as kind of business sector. No correlationbetween cost system sophistication and cost structure, diversity of product, IT quality wasdetected (Al-Omiri and Drury 2007)).
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