A framework for assessing cost management system changes: the case of activity-based costing implementation at food industry

Abstract

An opportunity to investigate the technical and organizational effect of management accounting system changes has appeared with companies' adoption of activity-based costing (ABC). This paper presents an empirical investigation to study the effects of ABC system for case study from food industry in Iran. From this case, the paper develops a framework for assessing ABC implementation and hypotheses about factors that influence implementation. The study detects five cost centers and for each cost center, it determines different cost drivers. The results of our survey has detected that implementation of ABC system not only helps precise allocation of overhead costs but also helps internal management companies for better planning and control of production, making better decisions for company's profits.Growing Science Ltd. All rights reserved. 5

Digital Transformation in Small and Medium-Sized Enterprises

“…Yet the problem remains that there is little empirical management accounting research targeting the investigation of technological innovation and development. Research in this field has long been concentrated on large enterprises (Anderson, 1995;Robert S. Kaplan, 1994;Monden & Hamada, 1991) because of a lack of supply of practical expertise from SMEs as well as a great amount of heterogeneity with regard to the definition of management control in the SME context (Mitchell & Reid, 2000). Management control in SME settings has simply not been "fashionable" (see: Mitchell & Reid, 2000, p. 386).…”

Activity Based Costing for Wastewater Treatment and Reuse under Uncertainty: A Fuzzy Approach

“…(100, 120, 130) 0 0 0 0 (1, 2, 4) 0 (17, 33,45) (1, 2, 3) (22, 23,26) 0 (2195, 2234, 2400) 0 0 0 0 0 0 0 (43, 50, 53) (23, 24,25) (1, 2, 3) (22, 24,26) 0 0 0 0 (700, 720, 750) 0 0 0 (1, 2, 3) 0 (14, 15,16) (1, 2, 3) (33, 26,27) 0 (2200, 2356, 2450) 0 0 0 0 0 0 − (43, 50, 78) (34, 38,39) (1, 2, 3) (22, 23,24) 0 0 0 0 0 (150, 155, 176) 0 0 (48, 54, 56) 0 (14, 17,23) (1, 2, 3) 0 (22, 23,26) 0 (1880, 2189, 2234) 0 0 0 (700, 731, 750) 0 − (23, 25,28) (17, 18,22) (1, 2, 3) (24, 23,26) 0 (2345, 2450, 2567) 0 0 0 0 0 − (23, 35,38) (2, 4,5) (1, 2, 3) 0 (22, 25,27) 0 0 0 0 0 0 (50, 55, 58) (48, 57, 57) 0 (34, 35,42) (1, 2, 3) 0 (22, 23,24) 0 0…”

“…As already mentioned, there is a tendency in some organizations to consider many of the costs related to wastewater recovery and reuse as indirect costs [25][26][27][28][29]. That assumption leads organizations to allocate them using some subjective (and imperfect) criterion or rate.…”

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

“…ABC was originally conceptualized as an effective costing method for manufacturers, but it has been used by numerous other industries, such as hospitals and related healthcare facilities (Kaplan & Porter, 2001;Gentili, 2014;Dwivedi & Chakraborty, 2015), by the US Postal Service (USPS; Carter et al, 1998), the restaurant and hotel industry (Horgren, 1995;Raab & Mayer, 2007), the life insurance industry (Adams, 1996), universities (Krishnan, 2006;Cox et al, 1999), the accounting profession (Cagwin & Bouwman, 2002), the banking industry (Innes et al, 2000), the energy sector (Wang et al, 2010;Rof & Capusneanu, 2015), and the food production industry (Faraji et al, 2015). Large companies like Chrysler (Ness & Cucuzza, 1995) and United Parcel Service (UPS) have also benefited from using ABC, particularly in the area of supply chain management (Binshan et al, 2001).…”