Today’s cost accountant must understand many functions of a business’s value chain, from manufacturing to marketing to distribution to customer service. This is particularly helpful when the company is involved in international trade. Accounting information system is an important resource of an organization as it works to provide management practice with necessary information decision making. It also plays a key role in the provision of an integrated vision of the organization to align its capabilities and resources available to them and their areas of work for the purpose of optimizing use of these resources in the case of use data and information in an efficient and effective manner. For an organization the decision to set prices has a direct impact on the revenue it can earn. Price and volume are the two components of the the revenue equation, and the choice to focus on one will directly affect the other (Lane & Durden, 2013). Cost accounting information system designed to provide valuable information useful for the management of the company to assist them in the exercise of its various functions of planning, control and decision-making where management needs cost information- accurate, fast and reliable. The system of cost information is an important source in many administrative decisions, such as pricing decisions, determination of the optimal mix of products, and measurement of the cost of operations within the company, eventually evaluation of the results. Pricing decisions are made within the context of a firm’s overall marketing plan. They reflect not only the policies and practices which management have decided to implement in order to attract buyers but, additionally, the organizational structure of the firm in which they are made (Foxall, 1980)Objectives of the study
The quality of information is provided by the cost accounting system at Industrial companies in the province of Taiz.
The Effect of the information provided by the cost accounting system in making pricing decisions at Yemeni Industrial companies in the province of Taiz.
The accreditation areas of pricing decisions on cost information system at Yemeni Industrial companies in the province of Taiz.
A group of previous studies related to the subject of the study have been utilized in the construction of study tools (questionnaires) which have been distributed in the industrial companies in the Taiz city, Yemen. This study targeted accounting costs, accountants, auditors and managers of financial departments in industrial companies.
How the author bridges that gap and his/her contribution
If appropriate information based on reliability in making pricing decisions for products is used in a timely manner to make predictions, it will help companies win over others in competitions. Quality can be achieved, efficiency increased in the performance of pricing decisions, the cost of decisions reduced, and the skills of the decisions makers improved at the aid of the information provided by the cost system. There are some areas adopting the pricing decisions on the basis of cost information related to major products, they add more economic value in the light of the plans and programs of companies.
Azad et al (2016) in study named “the Effect of Cost Accounting System Inventory on Increasing the Profitability of Products”have investigated that the use of appropriate storage systems inventory can increase the efficiency and profitability of the plant. Ahadi et al (2016) have showed that there are significant differences between the information of cleared-cost based on activity-based costing system with the traditional system in the General Directorate of Roads and Urban Development of East Azerbaijan Province. Lane ; Durden(2013) have investigated the role of cost information and costing systems in the pricing decisions of tourism organizations. Data was collected via an online survey instrument from a range of Queensland tourism organizations. Full cost information was found to have relatively greater importance.
Topor et al (2011) have understood how information derived from management accounting has an impact on development and foundation of new decisions and therefore to better understand the relationship between management accounting and information and showed the efficiency of information provided by management accounting in decision making and the operational control of the production process. Martin ; Stevens (2011) have analyzed cost accounting system from a cost – benefit perspective and find that in some circumstances traditional methods with their aggregated level of detail are economically optimal. They have proposed an effective approach to integrate both ABC and ECA systems. A case study analyzing process is used to compare the traditional accounting system and the ABC system for allocating environmental costs. The results enable managers not only to understand financial information regarding the activities for environmental protection and the percentage of environmental costs in the overall product costs but also to make more objective and accurate decisions.
The population of the research is accounting costs, accountants, auditors and managers of financial departments in industrial companies in the province of Taiz where 80 of them have been selected .we chose them based on five industrial companies sampling formula. For sampling after estimate the sample size the simple random sampling was used (66) questionnaire percentage of total recovery (83%). as sample.
Variable construction process and its rationale
The instrument used in this study, is a standard questionnaire based on Likert of 5 scale (from very high to very low) is designed. The Study Implement consists of two major aspects. The first part, Personal Information which is about (age _ Qualification _ scientific specialization _ years of experience-occupation) the second part is about the dimensions of the study.
Dependent and independent variable
Dependent variable: pricing decision at yemen TaizIndependent variable: cost accounting system
Analysis and findings
In this study used Descriptive statistics and Data analysis through the Statistical Package for Social Sciences (SPSS) was the use of scientific statistical methods “Frequencies and percentages, SMA, Standard deviation, Test t-test, Cronbach’s alpha test.
How the author differentiate these findings from the existing ones
There is a significant positive relationship between the Role of Cost Accounting System in the Pricing Decision-Making in Industrial Companies of Taiz City, Yemen. The impact of information in making pricing decisions have been showed by statistical tools the views of respondents on the impact of the information provided by the cost accounting system in making pricing decision. It appears the arithmetic average of the axis (4.1212), a degree of approval accepted by members of the sample and this means that there is an impact of the information provided by the system in making pricing decisions. . The results are in correlation with the findings of Topor et al (2011) and Hoque (2000). Other results showed that the adoption areas of pricing decisions on cost information system where the arithmetic mean of the axis (3.9141), a degree of approval by the members of the
sample and got (.64313) on a standard deviation, which indicates that there is concentration in the sample opinions about this axis, and this means that there are areas of the adoption pricing decisions on cost information system in industrial companies. The research results are in correlation with findings of (Martin & Stevens, 2011).
In the context of the present results with the results of (Lane& Durden2013) Pricing decisions and the role of cost accounting systems and cost information in tourism organizations matched. The role of cost information has a significantly positive effect on the decision-making in the Case study of Annales Universitatis Apulensis. The research findings match with Topor et al. (2011). Management accounting researchers have long considered the impact that a business „costing system has on the way pricing decisions are reached. This study has been conducted that the quality of information provided by the cost accounting system have been shown by statistical analysis tools, the responses show the subjects about the quality of information that is provided by cost accounting systems in the pricing decision making in the short term where the arithmetic mean of the axis (3.8239), a degree of approval by the members of the sample and this means that the systems provide information relevant high quality used in making pricing decisions. The results are in parallel with the research findings of Namazi (2009), Azizi (2012), and Fartookzadeh (2014).
Discuss rationale explanation
Through what has been reached from the results, the researchers suggests management companies which operate in the field of manufacturing as follows: Expansion to take advantage of cost accounting systems in all public and private industrial facilities, especially in the area of pricing decisions. Adopting a new vision in the design of such systems in order to provide high quality information to get benefit chances. Do studies in companies to verify the extent of adoption of the applications of cost systems and the role of these applications in promoting and strengthening pricing decisions. Promote specialty departments to provide cost accounting information for the costs that are of high quality in order to make the optimal resolution and thus lower cost.