The Influence of External Contingency Factors and Activity-Based Costing Implementation on Organizational Performance

Albalaki, Faeq Malallah Mahmood; Abdullah, Zarifah; Kamardin, Hasnah

doi:10.17576/pengurusan-2019-55-09

Cited by 5 publications

(5 citation statements)

References 59 publications

(124 reference statements)

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“…The main purpose of ABC, as noted by Turney (1996) and Cooper and Kaplan (1999) is to provide accurate production cost information, determine selling prices, identify market channels, and implement business strategies for attaining competitive advantage. Albalaki, Abdullah, and Kamardin (2019) demonstrate the role of ABC implementation on the relationship between external contingency factors and organizational performance.…”

Section: Activity-based Costingmentioning

confidence: 92%

Strategic Cost Management Practices and Organizational Performance: A Study of Manufacturing Firms in Nigeria

2020

Glob J Acc Fin

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There has been a lot of transformation in the manufacturing industry. The manufacturing processes are highly automated, multiple product mix strategies are employed, and the nature of production cost drivers are complex, production costs have increased and market competition has risen due to market globalization. Therefore, the use of the traditional cost management system, such as standard costing and predetermined overhead allocation system in the Nigerian manufacturing industry has proven to be ineffective in product costing, cost management, and decision making. As a result of these developments, it has become necessary to employ more refined product costing techniques of Strategic Cost Management. Some of the Strategic Cost Management methods are Activity-Based Costing, Target Costing, Life Cycle Costing, Balance Scorecard, and Total Quality Management. The implementation of the Strategic Cost Management system has led to improved product costing analysis and decision-making, production efficiency, and improved firm performance and market competitiveness. This study examines the effect of Strategic Cost Management practices on organizational performance of Nigerian manufacturing industry. A survey research design is employed to collect primary data, which are analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) method. The study reveals that Strategic Cost Management practices positively impact organizations' performance. Therefore, it is recommended that manufacturing firms still using the traditional costing methods should consider employing the Strategic Cost Management methods to enhance their performance and competitiveness.

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Section: Activity-based Costingmentioning

confidence: 92%

Strategic Cost Management Practices and Organizational Performance: A Study of Manufacturing Firms in Nigeria

2020

Glob J Acc Fin

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“…Prepare for the unexpected with the help of a wellthought-out contingency plan. All businesses, no matter how big or little, need backup plans (Mahmood Albalaki, Abdullah & Kamardin, 2019). The objective of a contingency plan is to enable a firm to go back to its day-to-day functions within the shortest time possible after an unpredicted event.…”

Section: Stratford Peer Reviewed Journals and Book Publishing Journal...mentioning

confidence: 99%

Influence of Contingency Recovery Plans on Performance of Processing Firms in Brazil

2023

JSM

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Contingency recovery plans refer to a collection of measures, either written down or communicated to all that shows how the firm will react when calamity or challenges strike the firm. The study examined the influence of contingency recovery plans on performance of processing firms in Brazil. A disaster can happen anytime, and a company should be ready for it and a firm should create an ideal strategy to reduce the impact of disaster and proceed on with the critical functions. A contingency plan is a back-up strategy, activated in case of an incident that disrupts firm's operations and puts staff members at risk. The study discovered that firm continuity planning and disaster recovery planning are the most vital aspects of a firm but are often ignored. Firms need to make a well-structured strategy and document for calamity recovery and firm continuation, even before a catastrophe happens. The research concludes that contingency recovery plans and firm performance is positively and substantially related. It was noted that a unitary improvement in contingency recovery strategies boosts the processing firm's performance. It is additionally concluded that contingency recovery plans include having a disaster recovery group, the development of preventative measures to reduce the effects of a disaster and creating a time frame for the recovery plans in the firm. The research recommends that there should be a disaster recovery group which is always prepared for the recovery plans within the firm. Furthermore, there is the need to have preventative measures established in the firm to reduce the effects of a certain calamity. A written recovery strategy that defines how the firm will respond when a calamity or disaster strikes should be prepared.

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“…No obstante, que en algunas empresas el sistema ABC como estudio de caso, fue también determinado paralelamente con sistema de costo tradicional, en el que se determinó que ambos sistemas pueden aplicarse en una empresa textil. Aun cuando el sistema ABC induzca a mejores resultados a partir información más precisa de costes unitarios para calcular los costes de capacidad inactiva reflejada en los costos unitarios, producto del resultado de una buena determinación de costos indirectos para mejor manejo de precios reales (Albalak et al, 2019;Şener y Ekinci, 2020).…”

Section: Textilesunclassified

“…No obstante, existen críticas sobre estas pequeñas y medianas empresas que no supieron ser capaces de adaptar las nuevas prácticas de contabilidad de gestión a un escenario empresarial cambiante. Aun así, existe un número significativo de estrategias en las PYMES para seguir ganando mayor atención y que permita lograr una eficiencia de clase mundial que pueda ayudar a realizar una transición de la eficiencia a la eficacia (Albalak et al, 2019;Joseph y Piorce, 2019;Tam y Tuan, 2020).…”

Section: Calidad Y Medio Ambienteunclassified

Activity-based costing (ABC) in SMEs and innovative initiatives: possible option or expired?

Mamani

Argota-Pérez²,

Nina

et al. 2021

Rev. Investig. Altoandin.

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The quantification of production/service costs to determine the market price is fundamental in offering the maximum value of satisfaction. Therefore, management accounting is essential. One of the alternative tools is activity-based costing, known as ABC system, an alternative method to overcome the limitations of traditional indirect cost systems, which somehow distort the actual accounting of costs. Will exploring its development, applicability, challenges and benefits still be a possible option? This study aimed at reviewing the scientific literature produced on the activity-based costing system in recent years, identifying trends of adoption and challegnes of implementation in various manufacturing and service firms. High impact journals indexed in PubMed, Web of Science (WoS), Scopus, among others, were analyzed. The results show an increase of publications on the implementation of the ABC system in PubMed (855 publications), WoS (1131) and Scopus (2535). The results show that its applicability remains a possible option as an alternative costing tool for SME managers or owners. This study concludes that the application of the ABC system is adequate to determine real costs and could guarantee more reasonable and competitive prices in the market. However, there is still resistance to its implementation due to human and technological ignorance.

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The Influence of External Contingency Factors and Activity-Based Costing Implementation on Organizational Performance

Cited by 5 publications

References 59 publications

Strategic Cost Management Practices and Organizational Performance: A Study of Manufacturing Firms in Nigeria

Strategic Cost Management Practices and Organizational Performance: A Study of Manufacturing Firms in Nigeria

Influence of Contingency Recovery Plans on Performance of Processing Firms in Brazil

Activity-based costing (ABC) in SMEs and innovative initiatives: possible option or expired?

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