Process-Based Governance in Public Administrations Using Activity-Based Costing

Becker, Jörg; Bergener, Philipp; Räckers, Michael

doi:10.1007/978-3-642-03516-6_15

Cited by 10 publications

(6 citation statements)

References 13 publications

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“…As demonstrated by Briner and Noble (2003), by linking costs of activities to the activities themselves and expressing it on a per-unit basis, the ABC results a much more meaningful analysis of costs than traditional cost accounting (TCA), which is based on predetermined overhead rates allocating total indirect costs to the final products (Sharma & Ratnatunga, 1997). Becker et al (2009), as well as by Buttross and Schmelzle (2003), suggest using ABC in public entities due to the specific characteristics of public service provision. More recently, Oseifuah (2014) reinforced that, despite the high cost of implementation, the resistance to change, and the problems in defining cost drivers or activities, in the long-term, the benefits of ABC far outweigh the costs.…”

Section: Bibliographic Backgroundmentioning

confidence: 99%

Micro-Level Public Entities’ Efficiency Reporting Using Combined Adaptation of Activity-Based Costing (ABC) and Free Disposable Hull (FDH) Analysis

Benedetti

Lima

2021

Public Organiz Rev

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This paper offers a contribution responding to the challenge of making efficiency reports from public organizations intelligible to society. The proposed methodology is based on a combination of Activity Based Costing System and Free Disposable Hull performance analysis. Per-unit cost of outcomes are derived from annual budget using cost drivers defined in terms of internal resources distribution and public services demand. Efficiency is, then, evaluated based on benchmarked key performance indicators (KPI). A simulated application using limited data available for the Brazilian Civil Aviation Agency (ANAC) illustrates how the strategy could increase data meaningfulness from a citizens' perspective.

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Section: Bibliographic Backgroundmentioning

confidence: 99%

Micro-Level Public Entities’ Efficiency Reporting Using Combined Adaptation of Activity-Based Costing (ABC) and Free Disposable Hull (FDH) Analysis

Benedetti

Lima

2021

Public Organiz Rev

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“…In addition, ABC usage in the public sector context can contribute to improving cost awareness in public sector organizations (Brown et al 1999), which also enhances public accountability, particularly in the management of resources (Miller 2009;Mohd Amir et al 2012). Becker et al (2009) in their study of application of ABC in public administration in Germany note that ABC can become an efficient tool for process governance in public sector organizations, and it also helps to assess and evaluate performance for public sector organizations.…”

Section: The Usefulness Of Abc In the Public Sector Contextmentioning

confidence: 99%

“…The idea of NPM reform has taken hold in many government sectors across the globe, and the adoption of private sector management accounting styles has become a prominent aspect of the transformation of public sector organizations (Jackson & Lapsley 2003). It has been claimed that the application of the ABC system in the context of the public sector is relevant because its operational activities mainly involve the provision of services to the public (Becker, Bergener & Rackers 2009). This is related to the fact that the cost of providing services in public sector organizations contains a high proportion of overheads and, thus, the ABC technique can function as a method of allocating overheads in a more precise manner than the traditional costing method.…”

Section: Introductionmentioning

confidence: 99%

The Implementation of Activity-based Costing in the Accountant General’s Department of Malaysia

Wahab¹,

Mohamad²,

Said³

2018

AJAG

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This research aims to provide insights into the process of implementing an Activity-Based Costing (ABC) system in the Accountant General's Department of Malaysia (AGD). Additionally, this paper examines the critical factors that influence the success of the ABC implementation process, the usefulness of the ABC system and the challenges faced during the process of implementation. Using a single case study approach, this research uses semi-structured interviews, a selfdeveloped questionnaire survey and a documents review as methods of data collection. The findings show that the most critical factors impacting the success of ABC implementation in the AGD are related to the technicality of the ABC system during the design stage. However, findings also reveal that the ABC information derived from the ABC system has limited use. This study makes a contribution to the empirical literature on the application of the New Public Management (NPM) mechanism, particularly the adoption of a private sector management technique in the context of a public sector organization in a developing country.

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“…Subsequently, they manually analyze the process models with the objective of identifying potential weaknesses (Baacke et al, 2009, Becker et al, 2006Kusiak et al, 1994) or evaluating the compliance of corporate rules and processes (Namiri and Stojanovic, 2007). Furthermore, they try to identify possible risks (Herrmann and Herrmann, 2006;Jallow et al, 2006), to assess the overall performance in areas of business objects, material and organizational resources of an organization (Kueng, 2000;Becker et al, 2009a), or to reorganize processes, e.g. through implementing ICT-concepts (Arendsen et al, 2008;Becker et al, 2008).…”

Section: Theoretical Foundationmentioning

confidence: 99%

Automatic identification of structural process weaknesses in flow chart diagrams

Winkelmann

Weiß²

2011

Business Process Management Journal

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Purpose -Financial institutions have been engaged in numerous business process reengineering (BPR) projects to make their organizations more efficient. However, the success of BPR projects in banks varies significantly and it remains a challenge to systematically discover weaknesses in business process landscapes. Based on the flow chart notation language this paper seeks to argue for the definition of weakness patterns in order to automatically identify potential process weaknesses. Design/methodology/approach -The authors developed weakness patterns in the flow chart notation language based on design science principles. To systematically derive process weaknesses that can be formalized, they analyzed each element of the flow chart notation as it was used in a real-life case. They furthermore tested the identified patterns in reality in order to evaluate their validity. Findings -The authors identified various potential weakness patterns that helped in automatically identifying weaknesses in process models. To some extent these findings are generalizable and transferable to other process modeling languages.Research limitations/implications -The pattern-based approach depends upon how well structural weakness patterns are defined and formalized. Identified problems remain "potential" weaknesses until a manual analysis reveals that the identified potential weaknesses are actually real weaknesses or not, e.g. due to law regulations. Practical implications -Using weakness patterns allows for automatically identifying potential process weaknesses in existing flow chart models. This way, this research helps in improving the so far manual analysis of process model landscapes. Originality/value -The approach is a new way of looking for process weaknesses through process weakness patterns.

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Process-Based Governance in Public Administrations Using Activity-Based Costing

Cited by 10 publications

References 13 publications

Micro-Level Public Entities’ Efficiency Reporting Using Combined Adaptation of Activity-Based Costing (ABC) and Free Disposable Hull (FDH) Analysis

Micro-Level Public Entities’ Efficiency Reporting Using Combined Adaptation of Activity-Based Costing (ABC) and Free Disposable Hull (FDH) Analysis

The Implementation of Activity-based Costing in the Accountant General’s Department of Malaysia

Automatic identification of structural process weaknesses in flow chart diagrams

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