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

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  • Uyar, Ali
  • Kuzey, Cemil

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.

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  • Uyar, Ali & Kuzey, Cemil, 2016. "Does management accounting mediate the relationship between cost system design and performance?," Advances in accounting, Elsevier, vol. 35(C), pages 170-176.
    • Handle: RePEc:eee:advacc:v:35:y:2016:i:c:p:170-176
    DOI: 10.1016/j.adiac.2016.06.004
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    5. Pashkevich, Natallia & von Schéele, Fabian & Haftor, Darek M., 2023. "Accounting for cognitive time in activity-based costing: A technology for the management of digital economy," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).

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