Academy of Strategic Management Journal Volume 20, Issue 1, 2021 1 1939-6104-20-1-700 THE IMPACT OF THE STANDARD COSTING SYSTEM ON THE PERFORMANCE OF INDUSTRIAL COMPANIES IN JORDAN Basiem Al-Shattarat, Prince Sultan University Husni Al-Shattarat, Zarqa University Zaid Dannoun, Independent Researcher ABSTRACT This study investigated the impact of the standard costing system on the performance of industrial companies in Jordan. The study population was selected from 47 industrial companies listed in the Amman Financial Market, a sample of 40 companies was selected for this study, and the questionnaire was adopted as a tool for this study. The results showed that there is a positive relationship between the standard costs and the performance of industrial companies in Jordan. The results suggest that the shareholders and management should learn from the current study that they are responsible for determining the level of performance by using modern methods in management accounting and cost accounting, which would achieve greater profitability for the company and thus improve its performance. Keywords: Standard Cost, Performance, Cost Accounting, Transaction Cost Theory. INTRODUCTION In light of the recent large technological and industrial developments, it has become necessary for industrial companies to implement modern strategies and policies that are compatible with these developments in the local and global arena, as the strategic goal of managing industrial companies is their continuity and maximizing their profitability while taking into account their ability to invest it, and as the traditional cost systems that load the total costs to the final product, that loads the final product costs are not justified or linked to it directly without a standards download process control, and then the difficulty of determining the cost of each product accurately and the difficulty of identifying Profitability and quality measurement. The management of these companies should apply modern cost systems that facilitate the planning, control, and reduction of the cost of the products (Abdullah & Mansour, 2015). Costing system's standard is one of the modern costs and important systems within the facility seeks to control costs through planning and control the use of resources through planning the arbitrator of the productive process and then the production cost information that facilitates control over the elements of costs through standards for the cost of longer advance by the foundations of a scientific process used as a basis When comparing the actual and the planned costs (Appelbaum et al., 2017). The growing competition puts industry companies and industrial market before the major challenges if it is to achieve profitability, and maintain the continuity and the level of high- quality production, so these companies to look for appropriate means to reduce costs, due to the shortcomings for cost-systems traditional currently applied in Industrial companies in Jordan,