Activity Based Costing or commonly known as ABC Costing is one of the most efficient process to determine the cost of production of the business organizations. The main objective of this article is to enquire the improvements in the financial performance of the businesses with the adoption of the ABC costing (Cagwin and Bouwman 2002). As per this article, there are certain conditions under which the organizations can avail the advantages of ABC costing (Cagwin and Bouwman 2002). The study shows that there is a deep relationship between the ABC costing and the Return on Investment of the companies that can be jointly held responsible for the improved financial performance of the organizations. Two objectives work behind the adoption of ABC costing by the companies. First, to assists the organizations in the process of strategic decision-making process; and second, to assist the organizations in improving the profit performance. However, several opinions are there regarding the efficiency of ABC costing. Several accountants all over the world raise questions about the usefulness of ABC costing. For this purpose, there is a need for empirical research to discuss both the usefulness and constraints of ABC costing implementation in the businesses. As per this article, in the complex business situations, the companies can get the most of the advantages of ABC costing like intense competitions, sophisticated information technology, complex businesses processes of the firms and others (Cagwin and Bouwman 2002). The variables of this research has effectively taken into consideration all these above mentioned factor at the time of measuring the efficiency of ABC costing in firm’s performances (Cagwin and Bouwman 2002).
For this research, a cross sectional mail survey has been conducted with 1058 internal auditors assuming that they would provide knowledgeable and unbiased opinion about the cost system of the companies (Cagwin and Bouwman 2002). Three hypotheses have been formed for this research. A particular model has been taken into consideration to prove the efficiency of ABC costing. The model is as follows:
ΔROI = f (ABC, enabling variables, control variables)
In the above equation, ΔROI denotes the change in return on investments in the prior three or five years. As per the findings of the research, there are some positive synergistic effects of the adoption of ABC costing that provides better performance of the organizations (Cagwin and Bouwman 2002). However, there are some areas that need further research like what are the most optimal combinations of initiatives for deriving the advantages of ABC costing and others. Furthermore, the findings of this research have spotted a positive relationship between the ABC costing and ROI improvements in the most complex business situations. Another important finding of this research is the effects of the other enabling conditions like the sophistication of information technology, competitive business environment, less capacity and others. It has been seen that all these aspects affects the process of ABC costing in the organizations. The previously used measured to determine the success of ABC costing is major predictors of the financial performance of the firms. This research process has also stated that there are ample opportunities for future research programs to analyze and evaluate the efficiency of ABC costing in increasing the performance of the firms (Cagwin and Bouwman 2002).
Cagwin, D. and Bouwman, M.J., 2002. The association between activity-based costing and improvement in financial performance. Management accounting research, 13(1), pp.1-39.
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2018). Management Accounting: ABC Costing . Retrieved from https://myassignmenthelp.com/free-samples/management-accounting-abc-costing.
"Management Accounting: ABC Costing ." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/management-accounting-abc-costing.
My Assignment Help (2018) Management Accounting: ABC Costing [Online]. Available from: https://myassignmenthelp.com/free-samples/management-accounting-abc-costing
[Accessed 22 January 2021].
My Assignment Help. 'Management Accounting: ABC Costing ' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/management-accounting-abc-costing> accessed 22 January 2021.
My Assignment Help. Management Accounting: ABC Costing [Internet]. My Assignment Help. 2018 [cited 22 January 2021]. Available from: https://myassignmenthelp.com/free-samples/management-accounting-abc-costing.
For years, MyAssignmenthelp.com has been operating as one of the cheap assignment help providers in the USA. We are one of the best college paper writing services that keep service price minimal. We do not let the affordability of our service to hamper the standard of our work. We have separate teams of experts to provide report writing help . At MyAssigenmnthelp.com, we believe in earning credibility, so students can pay for assignments only after getting satisfied solutions. Tough assignments bother you? Trust us with your project. You will not regret paying us to write assignments for you.
Answer: Introduction U.S. Federal Health Care Agencies play the role of controlling health hazards especially for diseases which have newly emerged. Standards are created by the agencies for protection of the public health system. This paper highlights the role of a specific U.S. Federal Health Care Agency. Here the role of Centers for Disease Control and Prevention (CDC) has been discussed. Additionally the paper discusses how the National A...
Read MoreAnswer: Introduction Green finance refers to a financial device that consists of debt, equity, grant, sales, purchase, or tool for managing risk in operations of organizations. Example of green finance comprise of investment guarantee, commodity insurance, insurance product, derivative rate of interest or credit. The credit is mostly issued under contract of an organization, individual, project, facility, or private agency or public with envi...
Read MoreAnswer: Introduction The 3D Fitness center is scheduled to open within three months and is based on the plan of being positioned as a brand that is providing its customers with three dimensional facilities which are fitness center, café, and a beauty and salon spa. The slogan of the organization is “Determination, Dedication & Desire in Life”. The organization is going to open five centers in Sydney with one being opened ...
Read MoreAnswers: 1. Indeterminacy of employment relation means assessing the factors that put impact on the relations of employment. In addition, it is need to turn the labour into something positive and productive for the organization. It means, employment has the ability but it is required by the employer to turn that capability that will provide the positive contribution in the organization. According to “International labour organizat...
Read MoreAnswer: Introduction: For individual growth, it is very important for people to self-reflect upon their own strengths and weaknesses. In order to do that, I took a Gallup’s strength finder quiz which helped me in identifying my top five strengths. A brief description of these strengths is shared as below. I see myself in a strong leadership role in the future and hence I have tried to associate my strengths with the same. The first str...
Read MoreJust share requirement and get customized Solution.
Orders
Overall Rating
Experts
Our writers make sure that all orders are submitted, prior to the deadline.
Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.
Feel free to contact our assignment writing services any time via phone, email or live chat. If you are unable to calculate word count online, ask our customer executives.
Our writers can provide you professional writing assistance on any subject at any level.
Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.
Get all your documents checked for plagiarism or duplicacy with us.
Get different kinds of essays typed in minutes with clicks.
Calculate your semester grades and cumulative GPa with our GPA Calculator.
Balance any chemical equation in minutes just by entering the formula.
Calculate the number of words and number of pages of all your academic documents.
Our Mission Client Satisfaction
Saved my life and offered me great quality work. Happy to find them. Now i guess i will get hooked with them. :p
Australia
I modified it with one feedback. The quick response and feedback were good. My request has been modified well.
Australia
the expert solution is very god unlike the solution of the financial risk management
Australia
Thanks for your support. This was perfectly done. ........................................
Australia