Effect of Lean Accounting on the Effectiveness of Internal Control in Jordanian Industrial Companies

Atallah Ahmad Alhosban; Mohammed Alsharairi

doi:doi:10.11648/j.ijber.20190803.19

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Effect of Lean Accounting on the Effectiveness of Internal Control in Jordanian Industrial Companies

Atallah Ahmad Alhosban, Mohammed Alsharairi

Published in International Journal of Business and Economics Research (Volume 8, Issue 3)

Received: 25 April 2019 Accepted: 4 June 2019 Published: 27 June 2019

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Abstract

The study aimed at explaining the effect of the use of lean accounting on the internal control components, namely accounting control and administrative control. A questionnaire was designed to achieve the objectives of the study. The study community shall be the internal auditors of the Jordanian industrial companies, which shall participate in the primary market only. The most important results of the study The industrial companies are based on the restructuring of their products from time to time based on customer requests, and this contributes to the achievement of financial control and accounting for production costs, and The industrial companies shift the reduction of production costs by reducing the cost of inventory to the lowest levels in order to control the assets and safety of the company and maintain a certain level of quality in the financial statements. the most important recommendations of the study: The need to achieve self-control of manufacturing processes by taking the target price and target cost, and the necessity of achieving the best product for the customers in terms of quality and the appropriate price, which affects positively on the achievement of cost control through the work of planning budgets.

Published in	International Journal of Business and Economics Research (Volume 8, Issue 3)
DOI	10.11648/j.ijber.20190803.19
Page(s)	153-160
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Lean Accounting, Internal Control, Accounting Control, Managerial Control

References

[1]	Adekoya F. Nigeria: Brewery Industry as Driver of Value-Chain Investment; 2016. Available: allafrica.com/view/group/main/main/id/00058451.html
[2]	Najm, Ahmed Saleh (2019) "The Effect of the Use of lean Accounting on Planning Production Processes in Jordanian Industrial Companies", Master Thesis, Al-Bayt University, Mafraq, Jordan.
[3]	Mohammed AL-Sharairi1, Atallah Al-Hosban2 &Hussam Thnaibat2 (2018)” The impact of the Risks of the Input of Accounting Information Systems on Managerial Control, Accounting Control and Internal Control in Commercial Banks in Jordan, International Journal of Business and Management; Vol. 13, No. 2.
[4]	Sief, Abd Aljaleel (2018) “Using lean Accounting Tools to Measure and Evaluate Performance in Health Units in Mosul City, Journal of Jihan University, Erbil, Iraq.
[5]	Awadallah, Linda (2018). The Effect of Integration between Resource Consumption Accounting and Agile Accounting System on Cost Reduction "Field Study on Some Food Industries Companies in Sudan", Journal of Economic Sciences, Deanship of Scientific Research, Sudan University of Science and Technology. Suhl, Eds. New York: Academic.
[6]	Daferighe, Emmanuel Emeakponuzo. (2018). Lean Accounting and Waste Management in Brewery Industry in Nigeria, Advances in Research, 15 (1). Kass, R. E. and A. E. Raftery (1995). Bayes Factors. Journal of the American Statistical Association 90, 773–794.
[7]	Enoch OK.) 2013. (Lean Accounting and Lean business philosophy in Nigeria: An exploratory research. International Journal of Economics, Finance and Management.
[8]	Maskell, B. & Kennedy, F. (2010). Why do we need lean accounting and how does it work? The Journal of Corporate Accounting & Finance, March/April, 59-73.
[9]	Lopes RB, Freitas F, Sousa. (2015). Application of Lean manufacturing tools in the food and beverage industries. Journal of Technology Management and Innovation and Innovation. 10 (3).
[10]	J- Abdeen, Sunni (2017). The Role of lean Accounting in Reducing Production Costs and 44.
[11]	Franco, Lucherin. (2017). Exploring the Impact of Lean Manufacturing on Flexibility in SMEs, Journal of Industrial Engineering and Management.
[12]	Sheikh Salem, Fouad (2007) "Modern Management Concepts", Jordan Book Center, Amman, Jordan.
[13]	Aljuifel, Ahmed Salama (2011) "The Role of Computerized Accounting Information in the Effectiveness of Internal Control in Jordanian Islamic Banks" Master Thesis, Middle East University, Amman, Jordan.
[14]	Al-Qdah, Ghassan Mustafa (2008) "Effect of Accounting Information Systems on the Effectiveness of Internal Control in Commercial Banks in Jordan, Master Thesis, Al-Bayt University, Mafraq, Jordan.
[15]	Moskov, Stephen (2007) "Accounting Information Systems" translated by Kamal Al-Din Saeed, Dar Al-Marikh Publishing, Riyadh, Saudi Arabia.
[16]	Kahala, Joseph and Hanan, Radwan (2004) "Administrative Accounting" International Scientific House and House of Culture for Publishing and Distribution, Amman, Jordan.

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APA Style

Atallah Ahmad Alhosban, Mohammed Alsharairi. (2019). Effect of Lean Accounting on the Effectiveness of Internal Control in Jordanian Industrial Companies. International Journal of Business and Economics Research, 8(3), 153-160. https://doi.org/10.11648/j.ijber.20190803.19

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ACS Style

Atallah Ahmad Alhosban; Mohammed Alsharairi. Effect of Lean Accounting on the Effectiveness of Internal Control in Jordanian Industrial Companies. Int. J. Bus. Econ. Res. 2019, 8(3), 153-160. doi: 10.11648/j.ijber.20190803.19

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AMA Style

Atallah Ahmad Alhosban, Mohammed Alsharairi. Effect of Lean Accounting on the Effectiveness of Internal Control in Jordanian Industrial Companies. Int J Bus Econ Res. 2019;8(3):153-160. doi: 10.11648/j.ijber.20190803.19

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@article{10.11648/j.ijber.20190803.19,
  author = {Atallah Ahmad Alhosban and Mohammed Alsharairi},
  title = {Effect of Lean Accounting on the Effectiveness of Internal Control in Jordanian Industrial Companies},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {3},
  pages = {153-160},
  doi = {10.11648/j.ijber.20190803.19},
  url = {https://doi.org/10.11648/j.ijber.20190803.19},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190803.19},
  abstract = {The study aimed at explaining the effect of the use of lean accounting on the internal control components, namely accounting control and administrative control. A questionnaire was designed to achieve the objectives of the study. The study community shall be the internal auditors of the Jordanian industrial companies, which shall participate in the primary market only. The most important results of the study The industrial companies are based on the restructuring of their products from time to time based on customer requests, and this contributes to the achievement of financial control and accounting for production costs, and The industrial companies shift the reduction of production costs by reducing the cost of inventory to the lowest levels in order to control the assets and safety of the company and maintain a certain level of quality in the financial statements. the most important recommendations of the study: The need to achieve self-control of manufacturing processes by taking the target price and target cost, and the necessity of achieving the best product for the customers in terms of quality and the appropriate price, which affects positively on the achievement of cost control through the work of planning budgets.},
 year = {2019}
}

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TY  - JOUR
T1  - Effect of Lean Accounting on the Effectiveness of Internal Control in Jordanian Industrial Companies
AU  - Atallah Ahmad Alhosban
AU  - Mohammed Alsharairi
Y1  - 2019/06/27
PY  - 2019
N1  - https://doi.org/10.11648/j.ijber.20190803.19
DO  - 10.11648/j.ijber.20190803.19
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 153
EP  - 160
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20190803.19
AB  - The study aimed at explaining the effect of the use of lean accounting on the internal control components, namely accounting control and administrative control. A questionnaire was designed to achieve the objectives of the study. The study community shall be the internal auditors of the Jordanian industrial companies, which shall participate in the primary market only. The most important results of the study The industrial companies are based on the restructuring of their products from time to time based on customer requests, and this contributes to the achievement of financial control and accounting for production costs, and The industrial companies shift the reduction of production costs by reducing the cost of inventory to the lowest levels in order to control the assets and safety of the company and maintain a certain level of quality in the financial statements. the most important recommendations of the study: The need to achieve self-control of manufacturing processes by taking the target price and target cost, and the necessity of achieving the best product for the customers in terms of quality and the appropriate price, which affects positively on the achievement of cost control through the work of planning budgets.
VL  - 8
IS  - 3
ER  -

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Author Information

Atallah Ahmad Alhosban

Aqaba University of Technology, Financial and Managerial College, Accounting, Aqaba, Jordan
Mohammed Alsharairi

Financial and Managerial College, Irbid National University, Accounting, Irbid, Jordan

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APA Style

Atallah Ahmad Alhosban, Mohammed Alsharairi. (2019). Effect of Lean Accounting on the Effectiveness of Internal Control in Jordanian Industrial Companies. International Journal of Business and Economics Research, 8(3), 153-160. https://doi.org/10.11648/j.ijber.20190803.19

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ACS Style

Atallah Ahmad Alhosban; Mohammed Alsharairi. Effect of Lean Accounting on the Effectiveness of Internal Control in Jordanian Industrial Companies. Int. J. Bus. Econ. Res. 2019, 8(3), 153-160. doi: 10.11648/j.ijber.20190803.19

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AMA Style

Atallah Ahmad Alhosban, Mohammed Alsharairi. Effect of Lean Accounting on the Effectiveness of Internal Control in Jordanian Industrial Companies. Int J Bus Econ Res. 2019;8(3):153-160. doi: 10.11648/j.ijber.20190803.19

Copy | Download

@article{10.11648/j.ijber.20190803.19,
  author = {Atallah Ahmad Alhosban and Mohammed Alsharairi},
  title = {Effect of Lean Accounting on the Effectiveness of Internal Control in Jordanian Industrial Companies},
  journal = {International Journal of Business and Economics Research},
  volume = {8},
  number = {3},
  pages = {153-160},
  doi = {10.11648/j.ijber.20190803.19},
  url = {https://doi.org/10.11648/j.ijber.20190803.19},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20190803.19},
  abstract = {The study aimed at explaining the effect of the use of lean accounting on the internal control components, namely accounting control and administrative control. A questionnaire was designed to achieve the objectives of the study. The study community shall be the internal auditors of the Jordanian industrial companies, which shall participate in the primary market only. The most important results of the study The industrial companies are based on the restructuring of their products from time to time based on customer requests, and this contributes to the achievement of financial control and accounting for production costs, and The industrial companies shift the reduction of production costs by reducing the cost of inventory to the lowest levels in order to control the assets and safety of the company and maintain a certain level of quality in the financial statements. the most important recommendations of the study: The need to achieve self-control of manufacturing processes by taking the target price and target cost, and the necessity of achieving the best product for the customers in terms of quality and the appropriate price, which affects positively on the achievement of cost control through the work of planning budgets.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Effect of Lean Accounting on the Effectiveness of Internal Control in Jordanian Industrial Companies
AU  - Atallah Ahmad Alhosban
AU  - Mohammed Alsharairi
Y1  - 2019/06/27
PY  - 2019
N1  - https://doi.org/10.11648/j.ijber.20190803.19
DO  - 10.11648/j.ijber.20190803.19
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 153
EP  - 160
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20190803.19
AB  - The study aimed at explaining the effect of the use of lean accounting on the internal control components, namely accounting control and administrative control. A questionnaire was designed to achieve the objectives of the study. The study community shall be the internal auditors of the Jordanian industrial companies, which shall participate in the primary market only. The most important results of the study The industrial companies are based on the restructuring of their products from time to time based on customer requests, and this contributes to the achievement of financial control and accounting for production costs, and The industrial companies shift the reduction of production costs by reducing the cost of inventory to the lowest levels in order to control the assets and safety of the company and maintain a certain level of quality in the financial statements. the most important recommendations of the study: The need to achieve self-control of manufacturing processes by taking the target price and target cost, and the necessity of achieving the best product for the customers in terms of quality and the appropriate price, which affects positively on the achievement of cost control through the work of planning budgets.
VL  - 8
IS  - 3
ER  -

Copy | Download