The effect of cost management control system and cost efficiency on organizational performance
Subject Areas :Seyede Zahra Mosavi 1 , Mohammad Kiamehr 2
1 - Department of Accounting, Faculty of Management and Accounting, Zand Institute of Higher Education, Shiraz, Iran
2 - Department of Accounting, Dariun Branch, Islamic Azad University, Dariun, Iran
Keywords: Cost efficiency, cost management, cost management control system, management control system, performance.,
Abstract :
Purpose: The management control system is being developed to evaluate the performance and efficiency of organizations. The purpose of this research is to investigate the improvement of organizational performance through the elements of the cost management control system with regard to the mediating role of cost efficiency. Methodology: This research is applied in terms of purpose and descriptive in terms of nature and method. The statistical population of the research is the companies of Shiraz Industrial City and the statistical sample is the collection of senior managers and employees of the financial field, numbering 143 people. The sampling method of this research was simple random and the data collection tool was a standard questionnaire taken from Dieffenbach et al (2018). In order to analyze the findings, structural equation modeling was used with SmartPLS 2. Findings: The research results show that the cost management control system has a positive and significant relationship with the two variables of cost efficiency and organizational performance. Cost efficiency has an impact on organizational performance, and when cost efficiency decreases, organizational performance decreases. In general, the cost management control system indirectly affects cost efficiency and organizational performance through the mediating variable of innovation. Originality: The management control system plays an important role in empowering organizations in the competitive world. The elements of cost management control system are effective on organizational performance and cost efficiency. These elements include strategy, organization, information, methods and culture.
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