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Is the activity based costing system a viable instrument for small and medium enterprises? The case of Mexico

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Listed:
  • Martha Ríos Manríquez
  • Clara I. Muñoz Colomina
  • M. Lourdes Rodríguez Vilariño Pastor

Abstract

Small and medium-sized firms (SMEs) face serious challenges in order to be competitive, and they needto develop strategies enabling them to control their costs. This work aims to analyze and evaluate theimpact, penetration and characteristics of Activity-Based Costs (ABC). This research is of a quantitativetype descriptive design, with a sample of 180 SMEs. The results show low penetration of the ABC in SMEsusing traditional systems, due to the lack of knowledge, and that there are enterprises that do not use anycosting system at all. Finally the Mexican SMEs recognize the compatibility and usefulness of ABC, andthat the most important fact is to understand the possible application of different costing methodologiesfor different purposes.

Suggested Citation

  • Martha Ríos Manríquez & Clara I. Muñoz Colomina & M. Lourdes Rodríguez Vilariño Pastor, 2014. "Is the activity based costing system a viable instrument for small and medium enterprises? The case of Mexico," Estudios Gerenciales, Universidad Icesi, July.
    • Handle: RePEc:col:000129:011983
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    File URL: http://www.icesi.edu.co/revistas/index.php/estudios_gerenciales/article/view/1809
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    References listed on IDEAS

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    1. Banker, Rajiv D. & Bardhan, Indranil R. & Chen, Tai-Yuan, 2008. "The role of manufacturing practices in mediating the impact of activity-based costing on plant performance," Accounting, Organizations and Society, Elsevier, vol. 33(1), pages 1-19, January.
    2. Ittner, Christopher D., 1999. "Activity-based costing concepts for quality improvement," European Management Journal, Elsevier, vol. 17(5), pages 492-500, October.
    3. Baxendale, Sidney J., 2001. "Activity-based costing for the small business: a primer," Business Horizons, Elsevier, vol. 44(1), pages 61-68.
    4. Baykasoglu, Adil & Kaplanoglu, Vahit, 2008. "Application of activity-based costing to a land transportation company: A case study," International Journal of Production Economics, Elsevier, vol. 116(2), pages 308-324, December.
    5. Carlos Fernando Cuevas Villegas & Guillermo Chávez & Jhon Alberto Castillo & Nelson Marino Caicedo, 2004. "Costeo ABC. ¿Por qué y cómo implantarlo?," Estudios Gerenciales, Universidad Icesi, September.
    6. Jamaliah Abdul Majid & Maliah Sulaiman, 2008. "Implementation of activity based costing in Malaysia," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 16(1), pages 39-55, May.
    7. Nara Medianeira Stefano, 2011. "Gerenciamento De Custos Em Pequenas Empresas Prestadoras De Servico Utilizando O Activity Based Costing (Abc)," Estudios Gerenciales, Universidad Icesi, December.
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    More about this item

    Keywords

    Small and medium enterprises; Activity-based costs; Traditional cost systems; Mexico;
    All these keywords.

    JEL classification:

    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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