The Influence of Organizational and Environmental Factors on Cost Systems Design in Egypt

Abstract

This paper aims at examining the extent to which organizational and environmental factors influence the cost systems design in Egyptian manufacturing firms. We use a questionnaire to survey a sample of Egyptian privately held firms in a wide spectrum of industrial sectors.

The findings of this study will help management and practitioners in the Egyptian industrial sector to design effective cost systems with a certain level of sophistication that rationalize decisions and improve manufacturing performance. This study is one of few surveys that examine the impact of contextual factors on the product cost sophistication level and manufacturing performance in the Egyptian context.

Keywords: Product cost systems, Activity- Based Costing, cost centers, cost pools, cost drivers, environmental culture, organization culture, Egypt

JEL Classification: M41, N65, N85, C12, C80, L1, L2