Dubai Company Characteristics Activities of Dubai Respondents
Order ID:89JHGSJE83839 Style:APA/MLA/Harvard/Chicago Pages:5-10 Instructions:
Dubai Company Characteristics Activities of Dubai Respondents
Table 1: Dubai Company Characteristics (Subsector Type) Activities of Dubai Respondents Percentage
Industrial Sector (57 companies)
Chemicals & Plastics 14
Engineering 12
Textiles 11
Food 14
Construction 21
Paper & Packaging 12
Electronics 11
Oil & Gas 5
100
- Service & Trading Sector (43 companies)
Financial * 42
Nonfinancial** 58
100
*Banks, insurance, financing **Real estate, hotels, trading (retail), consultancy, education, hospitality
4M A N A G E M E N T A C C O U N T I N G Q U A R T E R L Y W I N T E R 2 0 1 0 , V O L . 1 1 , N O . 2
76%) but is moderate in contrast with our results for the
service sector, implying that standard costing has not
become obsolete among either industrial or service
companies in Dubai.
Table 5 shows the importance of various standard
costing functions in Dubai companies using a seven-
point Likert scale, with responses of four or higher evi-
dencing importance and those less than four reflecting
less importance.
The cost functions—cost control and performance
evaluation, costing inventories, and computing product
cost for decision making—were of relatively greater
importance to Dubai industrial-sector companies than
to their counterparts in Malaysia and the U.K. More-
over, these standard costing functions were of much
lower importance in Dubai’s service sector. In terms of
significance, inventory costing is the key function of
standard costing for industries in Dubai, Malaysia, and
Table 2: Dubai Company Characteristics (Total Assets in MDhs) Total Assets Industrial Sector Service Sector
Frequency Percentage Frequency Percentage
10 million-100 million 19 33 14 32
101 millioin-500 million 24 42 21 49
>500 million 9 16 6 14
Missing 5 9 2 5
Total 57 100 43 100
Table 3: Dubai Company Characteristics (Number of Employees) Number of Employees Industrial Sector Service Sector
Frequency Percentage Frequency Percentage
<100 12 21 11 26
100-500 27 47 22 51
>500 14 25 9 21
Missing 4 7 1 2
Total 57 100 43 100
Table 4: Extent to Which Companies Use Standard Costing Dubai Malaysia New Zealand U.K.
Industrial Service Japanese Local % % % %
Yes 77 39 76 70 73 76
No 23 61 24 30 27 24
Total 100 100 100 100 100 100
5M A N A G E M E N T A C C O U N T I N G Q U A R T E R L Y W I N T E R 2 0 1 0 , V O L . 1 1 , N O . 2
the U.K., and, for the service sector, budgeting is the
most significant function. Mann-Whitney U test results
reject the null hypothesis of response bias, suggesting
that the industrial-sector companies in Dubai use stan-
dard costing to a greater extent than the service sector
for the first three functions of standard costing listed in
Table 5. Again, in only one instance has this pattern
reverted toward the service sector: the use of standard
costing as an aid to budgeting. These findings, on aver-
age, are consistent with those of other studies of
Table 5: Importance of Standard Costing Functions Dubai Malaysia U.K.
Industrial Service Japanese Local Function % % % % %
Cost control and performance evaluation 90** 71 83 82* 72
Costing inventories 94* 40 89* 68 80*
Computing product cost for 88* 46 83 78 62 decision making
As an aid to budgeting 78 83* 88 67 69
Data processing economies 42 33 75 56 43
Mann-Whitney U test statistic13: *significant at 5% **significant at 10%
Table 6: Methods Used to Set Labor and Material Standards Dubai Malaysia U.K.
Industrial Service Japanese Local Method % % % % %
Standards based on design/engineering 89** 48 81* 46 51* studies
Observations based on trial runs 57 39 53 42 30
Work study techniques 44 54 25 26 42
Average of historic usage 54 76* 44 63* 44
Mann-Whitney U test statistic: *significant at 5% **significant at 10%
Table 7: Type of Standards Employed Dubai Malaysia U.K.
Industrial Service Japanese Local Type % % % % %
Maximum-efficiency standards 15 19 33 17 5
Achievable but difficult-to-attain 30 25 22 31 44 standards
Average past performance standards 47 50 39 37 46
Other 8 6 6 15 5
Total 100 100 100 100 100
6M A N A G E M E N T A C C O U N T I N G Q U A R T E R L Y W I N T E R 2 0 1 0 , V O L . 1 1 , N O . 2
industrial-sector companies in Malaysia and the U.K.
LABOR AND MATERIAL STANDARDS
The mechanisms of setting labor and material standards
are reported in Table 6. Nearly nine out of 10 industrial-
sector respondents in Dubai employed standards based
on design/engineering studies, which is comparable to
Japanese companies in Malaysia (81%). These firms
appear to be significantly more scientific in their
approach to standards setting compared to the service
sector in Dubai (48%), local Malaysian companies
(46%), and U.K.-based companies (51%). Service-sector
companies in Dubai predominantly used “average of
historic usage method” (76%).
Dubai companies—both industrial and service-
oriented—favored “average past performance” as the
type of standard employed in their costing—47% and
50%, respectively. To be realistic and attainable, howev-
er, cost standards should reflect both “past perfor-
mance” and “expected future performance.” This is
supported in our study because companies favored both
past performance and expected future performance
through design and engineering studies (Table 6).
Dubai industries have become more international in
their operations and hence are facing greater competi-
tion in global markets. Thus one would expect these
companies to review their costing standards frequently
to cope with a changing environment where new prod-
ucts are introduced daily. We found that slightly more
than half of them (52%) conduct reviews semiannually,
Table 8: Frequency of Reviewing Standards Dubai Malaysia U.K.
Industrial Service Japanese Local Frequency % % % % %
Monthly or quarterly 17 33 17 24 14
Semiannually 52 40 55 18 9
Annually 24 27 11 35 68
Continuously 5 0 17 15 6
When the variances imply that the 2 0 0 8 3 standards have changed
Total 100 100 100 100 100
Table 9: Approaches for Investing Variances Dubai Malaysia U.K.
Industrial Service Japanese Local Approach % % % % %
No formal method used (decision 39 50 26 22 48 based on managerial judgment)
Where the variance exceeds a specific 19 21 28 33 26 monetary amount
Where the variance exceeds a given 35 29 32 33 23 percentage of standard
Statistical basis using control charts 7 0 14 12 2 or other statistical method
Total 100 100 100 100 100
7M A N A G E M E N T A C C O U N T I N G Q U A R T E R L Y W I N T E R 2 0 1 0 , V O L . 1 1 , N O . 2
consistent with Japanese respondents in Malaysia
(55%). On the other hand, domestic Malaysian firms
and companies in the U.K. were more apt to review
their costing standards annually at a rate of 35% and
68%, respectively.14
When considered together, the results from Tables 4
through 8 signify that companies in Dubai have not
abandoned standard costing in their management control
decisions. In fact, they have reconfigured existing cost
accounting systems to suit their dynamic needs and objec-
tives. These findings are consistent with those from stud-
ies of Malaysian companies by Sulaiman and colleagues.
AN EXAMINATION OF VARIANCES
Generally, managers are concerned about variations in
costs, materials usage, and sales—especially those out-
side acceptable ranges. Table 9 shows how companies
approach investigating such variances. In Dubai, 39% of
industrial companies and 50% of service companies
base their costing decisions on “managerial judgment,”
compared to roughly half of U.K. companies and one-
fourth of local and Japanese companies in Malaysia. On
the other hand, 35% of firms in Dubai’s industrial sector
and 29% in its service sector dug deeper for answers
when the variance exceeded a given percentage of stan-
dard, which is similar to the rates found in the
Malaysian and U.K. studies.
Table 10 shows the importance of variances for con-
trol purposes. Some 95% of industrial companies in
Dubai were extremely sensitive to variances in sales
volume, 90% to variances in materials prices, and 87%
to variances in sales price. These responses were similar
to those in the Malaysian studies. Also, the service sec-
tor in Dubai emphasized monitoring variances in sales
volume but with wage rates and labor efficiency consid-
ered very important as well.
STANDARD COSTING IS ALIVE AND WELL
Our study enables us to add to the existing costing liter-
ature in general, and the United Arab Emirates in par-
ticular, and to compare our findings with those of
previous studies about the manufacturing sector. Our
key findings are as follows:
◆ Seventy-seven percent of the companies in
Table 10: Importance of Particular Variances for Control Purposes
Dubai Malaysia U.K.
Industrial Service Japanese Local Approach % % % % %
Material price 90** 80 94 92 69
Material usage 81 31 82 93 66
Material mix 66 36 46 52 35
Material yield 76 33 60 55 52
Wage rate 48 67** 82 70 36
Labor efficiency 58 67 88 69 65
Variable overhead efficiency 74 40 59 71 32
Overhead expenditure 83 25 69 73 69
Fixed overhead volume 61 23 50 54 28
Fixed overhead volume efficiency 42 21 39 52 18
Fixed overhead volume capacity 68 31 54 69 18
Sales volume 95 81* 100 90 70
Sales price 87** 74 92 91 69
Mann-Whitney U test statistic: *significant at 5% **significant at 10%
8M A N A G E M E N T A C C O U N T I N G Q U A R T E R L Y W I N T E R 2 0 1 0 , V O L . 1 1 , N O . 2
Dubai’s industrial sector use standard costing
compared to 39% in the service sector.
◆ “Inventory costing” is the most important func-
tion of standard costing for the industrial sector,
while “aid to budgeting” is the most prevalent
costing function for the service sector.
◆ The industrial-sector companies prefer standards
based on design/engineering studies, but the ser-
vice sector favors average historic usage.
◆ Forty-five percent of the industrial companies and
44% of service companies in Dubai use “maxi-
mum efficiency standards” and “achievable but
difficult to attain standards” in practice.
Dubai Company Characteristics Activities of Dubai Respondents
RUBRIC
Excellent Quality
95-100%
Introduction 45-41 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Literature Support
91-84 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Methodology
58-53 points
Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score
50-85%
40-38 points
More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.
83-76 points
Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.
52-49 points
Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality
0-45%
37-1 points
The background and/or significance are missing. No search history information is provided.
75-1 points
Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.
48-1 points
There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
You Can Also Place the Order at www.collegepaper.us/orders/ordernow or www.crucialessay.com/orders/ordernow