ABC/M: Which companies have success?

Since the 1970s, activity-based costing (ABC) has enabled companies to identify the true costs of processes and products and to make sound decisions related to the profitability and expense of the products they produce, as well as the effectiveness of their manufacturing and business processes. This paper explores the advantages of activity-based costing vs. traditional costing systems and presents arguments for the potential benefits to the world's millions of small to medium business (SMEs) from implementing ABC. Issues related to the implementation of ABC are discussed. A framework for ABC implementations in SMEs is presented that shows the variables (characteristics of SME and implementation challenges) that can impact the ABC implementation process, and/or ultimately, implementation outcomes.

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“…The more of the following factors that exist in the company, the more beneficial it would be to implement ABC [58,60,61]. …”

Section: Activity-based Costingmentioning

confidence: 99%

Activity-Based Costing: Helping Small and Medium-Sized Firms Achieve a Competitive Edge in the Global Marketplace

Kocakülâh¹,

Foroughi²,

Stott³

et al. 2017

J Account Mark

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The design and implementation of Activity Based Costing (ABC): a South African survey

Sartorius

Eitzen

Kamala

2007

Meditari Accountancy Research

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Activity Based Costing (ABC) has been researched extensively in developed countries. Research on these issues in South Africa is limited. This article creates a better understanding of the design of ABC systems in South Africa, comparing ABC implementation in South Africa to that in several developed/developing countries. A quantitative methodology was adopted to evaluate the extent of ABC implementation. A survey-case study methodology was used to identify reasons for implementation/ non-implementation, problems and critical success factors relating to implementation. The results show that the extent of ABC implementation in South Africa is lower than that found in developed countries, but the evidence is inconclusive. Nevertheless, the results suggest that the issues facing ABC implementers in South Africa are similar to those faced in many other countries. This study provides South African companies with a comparative framework of important variables to be considered in implementing ABC.

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Logistics Process Reengineering Mechanism and Measures Based on Activity Cost Information

Zhou

Wang²

2008

2008 4th International Conference on Wireless Communications, Networking and Mobile Computing

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ABC/M: Which companies have success?

Abstract: No technique works equally well for every company. That's especially true for activity‐based costing and management (ABC/M). But which companies and industries have had the greatest success—and why? © 2001 John Wiley & Sons, Inc.

Cited by 6 publications

References 0 publications

Activity-Based Costing: Helping Small and Medium-Sized Firms Achieve a Competitive Edge in the Global Marketplace

Activity-Based Costing: Helping Small and Medium-Sized Firms Achieve a Competitive Edge in the Global Marketplace

The design and implementation of Activity Based Costing (ABC): a South African survey

Logistics Process Reengineering Mechanism and Measures Based on Activity Cost Information

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