ISO 9000, activity based costing and organizational performance

Abstract

This study investigates the potential complementarity between ISO 9000 and Activity Based Costing (ABC). This is undertaken by examining associations between the extent of ISO 9000 implementation and the extent of ABC use and by examining the impact on organizational performance of the extent of ISO 9000 implementation in organizations that have adopted both ISO 9000 and ABC (ABC Firms) as compared to those that have only adopted ISO 9000 (Non-ABC Firms).Correlation analysis and a multi-group analysis in structural equation modelling (SEM) are employed using quantitative data from a cross-sectional mail survey of 601 Thai ISO 9001-registered organizations. The results indicate that there are significant positive correlations between ISO 9000 and ABC activities, and that the impact of ISO 9000 implementation on organizational performance is significantly stronger for ABC Firms than that for Non-ABC Firms.

The influence of the importance of cost information, product diversity and accountants’ participation on the activity-based costing adoption

“…In addition, the information of this system is also used to improve the quality of manufactured products, as it helps to identify the processes that led to their low quality. A similar point of view is shared by Ozkan and Karaibrahimoglu (2013), Vetchagool et al (2018).…”

“…Hoozée and Bruggeman (2010) and Hoozée and Ngo (2017) note that the involvement of managers in developing a costing system is positively associated with both their autonomous motivation to manage costs and their perception of the usefulness of cost information. Accountants are better informed about the nature of the business and the specifics of the manufacturing operation (Vetchagool et al, 2018). For this reason, the involvement of accountants in the development of the costing system should encourage companies to adopt more advanced cost accounting systems.…”

Organizational and technical aspect of quality management of food industry testing laboratories

“…Indeed, the quality factor C A t is a vector-valued function, which is a notional (abstract) identification of controlled and uncontrolled factors of distinctive qualitative nature, namely, technical and economical, organizational and social character of impact on quality. These factors collectively determine public needs and material costs, which are necessary for reaching the required quality level at a certain point [15,16].…”

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

“…Por tanto, el grado de correlación positiva entre las actividades de ISO 9000 y ABC es significativamente fuerte para las empresas que ofertan sus productos a partir de sistema de gestión calidad al servicio del ciudadano. Entonces, la implementación simultánea de ambos procesos sirve para revisar y diseñar los sistemas de mejora continua y para que el desempeño sea realmente una mejor opción (Witchulada et al, 2018).…”