Strategy and activity based costing: a cross national study of process and outcome contingencies. (2nd September 2005)

• Record Type: Journal Article
• Authors: Bhimani, Alnoor; Gosselin, Maurice; Ncube, Mthuli
• Is Part Of: International journal of accounting, auditing and performance evaluation. Volume 2:Number 3(2005)
• Page Start: 187
• Page End: 205
• Publication Date: 2005-09-02
• Subjects: activity based costing -- ABC implementation -- corporate strategy -- process contingencies -- outcomes -- corporate costing -- cross-national study -- business strategy; 657
• Languages: English
• ISSNs: 1740-8008

Abstract

This investigation assesses the associations between strategy and experiences with activity based costing (ABC). Experience with ABC has two elements – processes and outcomes. The study considers strategy based process contingencies in relation to the decision to implement ABC, as well as the extent and speed of implementation. Outcome contingency is considered in terms of the perceived success of ABC implementation. A questionnaire was developed to collect information on corporate costing experiences and strategic orientation across organisations in seven countries. The results of the study suggest the prevalence of outcome based rather than process based dependencies between ABC and corporate strategy orientation.