Activity-based costing user satisfaction and type of system: A research note

Activity Based Costing knowledge: empirical study on small and medium-size enterprises

“…Most researchers nowadays believe that Activity Based Costing is the best way to determine the product cost. (COOPER, 1988;SWENSON, 1995;JOHNSON, 1988;KENNEDY;AFFLECK-GRAVES, 2001;DRAKE;HAKA, 2008;MAIGA;JACOBS, 2008;PIKE et al, 2011;STOUT;PROPRI, 2011). This opinion is due to the method how costs that are not directly related to the volume of production, but instead are related to other factors such as the number of production orders or even the number of products made, are accounted for (AGNDAL; NILSSON, 2007;RIVERO;EMBLEMSVAG, 2007;MACHADO, 2009).…”

“…Investigators today are still concerned whether companies are using the most adequate accounting method, more specifically the Activity Based Costing (KAPLAN, 2006;MAJOR, 2007;RIVERO;EMBLEMSVAG, 2007;BHIMANI et al, 2007;AGNDAL;NILSSON, 2007;BHIMANI et al, 2007;MAIGA;JACOBS, 2008;ENGLUND;GERDIN, 2008;DRAKE;HAKA, 2008;BANKER et al, 2008;KALLUNKI;SILVOLA, 2008;HOOZÉE;BRUGGEMAN, 2010;NASSAR et al, 2011;PIKE et al, 2011;STOUT;PROPRI, 2011;SCHOUTE, 2011). However the empirical study by Dearman and Shields (2001) concluded that even without using any methods which are considered theoretically accurate we can still achieve correct management decisions as long as the standing managers possess some knowledge of Activity Based Costing.…”

“Pseudo- Activity-Based Costing Practice for Decision-Making in Palestine: An Empirical Evidence-2”

“…The application of "pseudo-ABC" is consistent with the literature. Pike et al (2011) have reported that 181 users of 16 different ABC systems within the organization produce five performance constructs of cost accuracy, cost-benefit trade-off, ABC impact, information use, and decision action. So, "pseudo-ABC" could be analogous or compatible to any one of those 16 different versions of ABC system.…”

“…So, the information provided would be positively utilized to aid management in decision-making. Pike et al (2011) have reported that 181 users of 16 different ABC systems within the organization to produce five performance constructs of cost accuracy, cost-benefit trade-off, ABC impact, information use, and decision action. Palestinians did not implement ABC because respondents stated lack of Arabic software, high cost and other pertinent factors.…”

“…Hence, accurate costing information is crucial for Palestinian manufacturing business in an Israeli competitive environment (Halwani and Kapitan, 2007). Traditional cost accounting practices may provide misleading performance measures for manufacturing business that is no longer involved in mass production of a single product (Pike et al, 2011); whereas the broad publicity of ABC systems over the world has attracted the attention of business managers and researchers alike as one of the strategic tools to aid managers for better decision making in researched developed countries (Lana and Fei, 2007); very little research has been done in developing countries, especially in Asian culture context. However, prior research concentrated mainly on behavioral, organizational and technical variables (see Table 1; Table 2) as the main of ABC studies, but very little research has been done to examine the roles of organizational culture and structure (Baird et al, 2007, Fei andIsa, 2010).…”