A STUDY OF SAUDI MANUFACTURING FIRMS ON QUALITY COSTS' MEDIATING ROLE IN THE LINK BETWEEN FINANCIAL PERFORMANCE AND MANAGEMENT ACCOUNTING SYSTEMS
Abstract
This study aimed to ascertain the consequences of cost quality as a moderator in the relationship between manufacturing firms' financial performance on the Saudi Stock Exchange and management accounting systems. To gather data to answer the study questions, three questionnaires were developed. The first section addresses quality costs, the second section addresses the management accounting system (value chain, target cost, and just-in-time), and the third section addresses financial performance. The findings: Financial performance is statistically affected by the value chain, target cost, and just-in-time, and quality costs are also statistically affected by these factors. Value chain, target cost, and just-in-time relationships are all impacted by quality expenses, which have a partial mediating effect on financial performance due to their statistically significant impact. The link between financial performance and management accounting systems (value chain, target costs, and just-in-time) in Saudi manufacturing enterprises is consequently accounted for by the quality costs' statistically significant mediating effect. The researcher recommended that more research be done in a variety of economic domains to examine the mediating role that quality costs have in the link between financial performance and management accounting systems, as well as the manner in which quality costs function as a moderator in different national contexts.
Keyword : Quality Cost, Management Accounting systems, Financial Performance, Saudi Stock Exchange, and Saudi Manufacturing Firms.
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