The association between Activity-Based Costing and performance: Empirical evidence from Moroccan companies

Abstract

Research Question: Can the adoption of ABC have a positive impact on the performance of the company? Motivation: We have observed in the literature that studies on the impact of ABC on performance most often focus on financial performance. We want to explore this theme by studying, in addition to financial performance, non-financial performance. Idea: This study attempts to study the impact of ABC on performance. Data: Data was gathered using a multi-item questionnaire survey on large companies. To obtain rich data, three semi-structured interviews were conducted with management controllers. In total, 62 companies responded to the questionnaire. Tools: We used two types of tests to analyze the data: the Wilcoxon and Mann-Whitney tests and the median test. Findings: The results indicate that, overall, companies that have adopted ABC have improved their performance significantly. Indeed, its adoption has a positive effect that is more important than the traditional method on the non-financial performance of companies. However, a direct relationship between ABC and financial performance has not been confirmed. Contribution: Previous studies have focused on the effect of ABC on financial performance with inconclusive results. Our contribution has been to demonstrate the positive impact of ABC on non-financial performance. We have also concluded an indirect relationship between ABC and financial performance, which happens precisely through improving non-financial performance. We also concluded the importance of the time variable in evaluating the link between ABC and performance. The expected benefits from ABC depend on time and cannot be delivered immediately and simultaneously.

The impact of contextual factors on costing system design: The moderating role of facilitator factors

“…The empirical evidence supports the positive influence of each of outcome orientation (Charaf & Bescos, 2013;Zhang et al, 2015), attention to detail (Baird et al, 2007) and control (Baird et al, 2004) on ABC adoption and/or success. Based on the above, it can be argued that organizational culture is crucial to facilitate the process of changing the CSD to mold it to the context's requirements.…”

“…This is due to different reasons related to the various dimensions of organizational culture, of which the cultural dimensions of outcome orientation, attention to detail, and control form our current focus due to their established relevance to CSD (Baird et al, 2007;Baird et al, 2004). The outcome orientation dimension indicates the extent to which the business values competitiveness and emphasizes actions, achievements, results and performance (Baird et al, 2007;Baird et al, 2004;Charaf & Bescos, 2013). The adoption of ABC, and hence CSC, requires an outcome-oriented culture because there needs to be an appreciation of the system's benefits in relation to improving the processes, competitiveness and performance (Aljabr, 2021;Baird et al, 2004).…”

“…The adoption of ABC, and hence CSC, requires an outcome-oriented culture because there needs to be an appreciation of the system's benefits in relation to improving the processes, competitiveness and performance (Aljabr, 2021;Baird et al, 2004). The attention to detail dimension shows the extent to which the business values detail, precision and carefulness (Baird et al, 2007;Charaf & Bescos, 2013). The adoption of ABC, and thus CSC, needs a detail-oriented culture because an appreciation of the system's benefits is required in terms of providing accurate and detailed cost information (Aljabr, 2021;Baird et al, 2007).…”

أثر التحول الرقمي على أدوات محاسبة التكاليف والأداء التنظيمي للشركة

“…‫نتيجة‬ ‫تتحقق‬ ‫التي‬ ‫المنافع‬ ‫السابقة‬ ‫الدراسات‬ ‫من‬ ‫العديد‬ ‫تناولت‬ ‫استخدام‬ ‫يلي‬ ‫فيما‬ ‫ونعرض‬ ‫الرقمي،‬ ‫التحول‬ ‫تقنيات‬ ‫المنافع‬ ‫هذه‬ ‫ألهم‬ (George and Patatoukas, 2020;Gertzen et al, 2022;Secinaro et al, 2021;Watini et al, 2022;Yoon, 2020 (Boneva, 2018;Favoretto et al, 2022;Jones et al, 2021;Nahrkhalaji et al, 2018 (Bhimani et al, 2005;Charaf and Rahmouni, 2014;Bhimani, 2020;Wegmann et al,2011;Faria et al, 2018) . (Tabitha and Ogungbade, 2016;Williamson, 1996;Waweru, 2010;Leksono et al, 2019;Alhosban et al, 2021) .…”

Optimalisasi Tarif Layanan dengan Memperbaiki dan Meningkatkan Kualitas Pelayanan di Loka Litbangkes Pangandaran

“…Selain itu, penerapan traditional costing dianggap sebagai sistem penetapan biaya yang tidak efektif dalam kondisi masyarakat yang terus berubah, teknologi yang berkembang, dan produksi yang meningkat (Shanmugam, 2022). Oleh karena itu, perlu alternatif sistem perhitungan tarif yang mampu meningkatkan proses kualitas pelayanan, dan kepuasan pelanggan (Charaf, Rahmouni, & Sabar, 2022). Metode perhitungan yang banyak digunakan dan terbukti mampu meningkatkan kinerja keuangan adalah Activity Based Costing (ABC) system (Maha Faisal Alsayegh, 2020;Quesado & Silva, 2021).…”