Activity-based costing for the small business: a primer

Activity-Based Costing System in the Service Sector: A Strategic Approach for Enhancing Managerial Decision Making and Competitiveness

“…Attribute activity costs to cost objects and 6. Use the information (Baxendale and Dombusch, 2000). However, the study shows that a formidable task for most companies that implemented ABC is collecting information for specifying and assigning costs to activities.…”

“…If a company implements ABC, it will open a lot of eyes. More than just opening eyes, managers will be able to use the information to informed decisions (Baxendale and Dombusch, 2000). During the last two decades, we have witnessed substantial changes in the service sector with new competitors emerging as a result of deregulation which has also given companies greater freedom in setting prices and determining the mix of products offered.…”

Lagging Effects of the Use of Activity-Based Costing on the Financial Performance of Small Firms*

“…More specifically, we investigate, if the past financial performance of small sustaining and growing firms drives the extent to which ABC is used and explore, whether the use of ABC relates to a small firm's subsequent financial performance. It has been stated that ABC might be very useful for small firms, too, providing benefits for their cost‐efficiency, decision‐making, and performance (Baxendale 2001; Gunasekaran, Marri, and Grieve 1999; Hicks 1999; Kaplan and Cooper 1998; Roztocki et al. 2004).…”

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

“…At the same time, growing awareness of the importance of SMEs, which as reported earlier, represent more than ninety percent of all employment around the world, has provided the impetus for further investigation of the potential for ABC to help SMEs become competitive and thrive in today's competitive market environment (Baxendale, 2001;Majid & Sulaiman, 2008;Stefano & Filho, 2013;Hall, McPeak, & Rasiah, 2011;Vanshal et al, 2013;Dubihlela & Rundora, 2014;Ríos et al, 2014;Machado, Shil, & Pramanik, 2012;Stratton et al, 2009;Roztocki & Schultz, 2003;Harash et al, 2014;Huynh et al, 2013;Özyürek & Ülütürk, 2015) and for the development and use of software to implement ABC, such as 3Com Technology (Vázquez, 2004) or SAS (OROS System) (Januszewski, 2008).…”