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

Cost accounting systems structure and information quality properties: an empirical analysis Purpose – This 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/approach – In 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. Findings – The 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/implications – The 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/value – The innovation of the study lies in the development of an integrated framework that encompasses both cost systems structure characteristics and cost information effectiveness features. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Applied Accounting Research Emerald Publishing

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

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Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
0967-5426
DOI
10.1108/09675421111130586
Publisher site
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Abstract

Purpose – This 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/approach – In 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. Findings – The 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/implications – The 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/value – The innovation of the study lies in the development of an integrated framework that encompasses both cost systems structure characteristics and cost information effectiveness features.

Journal

Journal of Applied Accounting Research – Emerald Publishing

Published: May 31, 2011

Keywords: Management accounting; Cost accounting; Surveys; Greece

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