Abc System Essay
Factors Influencing Activity-Based Costing Success: A Research Framework
Zhang Yi Fei and Che Ruhana Isa becoming more and more popular [3-7] ABC aims to provide accurate costing information to managers to allocate activity costs to products and services by applying cost drivers . Academics who advocate ABC, such as, Cooper and Kaplan , and Swenson  argue that it provides more accurate cost data needed to make appropriate strategic decisions about product mix, sourcing, pricing, process improvement, and evaluation of business process performance. These claims have led many firms to adopt ABC systems . The benefits of ABC and its …show more content…
Abstract—In today’s advanced manufacturing and competitive environment, accurate costing information is crucial for all the kinds of businesses, such as manufacturing firms, merchandizing firms, and service firms. Argued to be superior to the traditional volume-based costing system, Activity-Based Costing system (ABC) has increasingly attracted the attention of practitioners and researchers alike as one of the strategic tools to aid managers for better decision making. The benefits of ABC system and its impacts on companies’ performance have motivated numerous empirical studies on ABC system and it is considered as one of the most-researched management accounting areas in developed countries.