IDEAS home Printed from https://ideas.repec.org/a/ine/journl/v1y2011i41p151-168.html
   My bibliography  Save this article

Activity-based Costing (ABC) and Activity-based Management(ABM)Implementation – Is This the Solution for Organizations to Gain Profitability?

Author

Listed:
  • Ildikó Réka CARDOS

    (University, Faculty of Economics and Business Administration, Cluj-Napoca)

  • Stefan PETE

    (Babes-Bolyai University, Faculty of Economics and Business Administration, Cluj-Napoca)

Abstract

Adherents of ABC/ABM systems claimed traditional management accounting systems generated misleading costs in a contemporary, tumultuous, often changing business environment and implementing ABC/ABM would remedy this. That is why activity-based costing (ABC) and activity-based management (ABM) represents the symbol of improved competitiveness and efficiency in every organization.The purpose of this article – after analyzing the existing literature in the field – is to emphasize that new cost systems such as ABC and ABM could be a strong couple that assures competitiveness and efficiency for each company. Another objective is to present that, besides its disadvantages, firms implement the ABC/ABM system because it permits better tracing of costs to objects, superior allocation of overheads to cost objects, financial and non-financial analysis and measures useful to managers and management accountants in the decision-making process.

Suggested Citation

  • Ildikó Réka CARDOS & Stefan PETE, 2011. "Activity-based Costing (ABC) and Activity-based Management(ABM)Implementation – Is This the Solution for Organizations to Gain Profitability?," Romanian Journal of Economics, Institute of National Economy, vol. 32(1(41)), pages 151-168, June.
    • Handle: RePEc:ine:journl:v:1:y:2011:i:41:p:151-168
    as

    Download full text from publisher

    File URL: http://www.revecon.ro/articles/2011-1/2011-1-9.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Trond Bjørnenak & Falconer Mitchell, 2002. "The development of activity-based costing journal literature, 1987-2000," European Accounting Review, Taylor & Francis Journals, vol. 11(3), pages 481-508.
    2. Trevor Hopper & Maria Major, 2007. "Extending Institutional Analysis through Theoretical Triangulation: Regulation and Activity-Based Costing in Portuguese Telecommunications," European Accounting Review, Taylor & Francis Journals, vol. 16(1), pages 59-97.
    3. Kevin Baird, 2007. "Adoption of activity management practices in public sector organizations," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 47(4), pages 551-569, December.
    4. Marko Jarvenpaa, 2007. "Making Business Partners: A Case Study on how Management Accounting Culture was Changed," European Accounting Review, Taylor & Francis Journals, vol. 16(1), pages 99-142.
    5. Lukka, Kari & Granlund, Markus, 2002. "The fragmented communication structure within the accounting academia: the case of activity-based costing research genres," Accounting, Organizations and Society, Elsevier, vol. 27(1-2), pages 165-190.
    6. Kari Lukka & Jan Mouritsen, 2002. "Homogeneity or heterogeneity of research in management accounting?," European Accounting Review, Taylor & Francis Journals, vol. 11(4), pages 805-811.
    7. Pierre-Laurent Bescos & Éric Cauvin & Maurice Gosselin, 2002. "Activity-based costing and activity-based management : A comparison of the practices in Canada and in France," ACCRA, Association francophone de comptabilité, vol. 8(3), pages 229-244.
    8. Colwyn Jones, T. & Dugdale, David, 2002. "The ABC bandwagon and the juggernaut of modernity," Accounting, Organizations and Society, Elsevier, vol. 27(1-2), pages 121-163.
    9. Zimmerman, Jerold L., 2001. "Conjectures regarding empirical managerial accounting research," Journal of Accounting and Economics, Elsevier, vol. 32(1-3), pages 411-427, December.
    10. Pierre-Laurent Bescos & Éric Cauvin & Maurice Gosselin, 2002. "Activity-based costing and activity-based management : A comparison of the practices in Canada and in France," Comptabilité - Contrôle - Audit, Association francophone de comptabilité, vol. 8(3), pages 229-244.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. HATIF Majeed & SADIK Hamza, 2012. "Strategic Management Accounting Techniques In Romanian Companies: An Empirical Study," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 7(2), pages 126-140, August.
    2. Phillip C. James, 2013. "An Analysis of the Factors Influencing the Adoption of Activity Based Costing (ABC) in the Financial Sector in Jamaica," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 3(7), pages 8-18, July.
    3. Phillip C. James, 2013. "An Analysis of the Factors Influencing the Adoption of Activity Based Costing (ABC) in the Financial Sector in Jamaica," International Journal of Business and Social Research, LAR Center Press, vol. 3(7), pages 8-18, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ildikó Réka CARDOS & Stefan PETE & Vasile Daniel CARDOS, 2012. "An Overview On The Adoption And Implementation Of Activity - Based Costing In Practice," Romanian Journal of Economics, Institute of National Economy, vol. 35(2(44)), pages 185-200, December.
    2. Modell, Sven & Vinnari, Eija & Lukka, Kari, 2017. "On the virtues and vices of combining theories: The case of institutional and actor-network theories in accounting research," Accounting, Organizations and Society, Elsevier, vol. 60(C), pages 62-78.
    3. Jana Fibírová, 2008. "The Competitive Advantage of Management Accounting [Konkurenční výhoda manažerského účetnictví]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2008(2), pages 78-90.
    4. Simon Alcouffe & Pierre Mévellec, 2012. "Analyse de la littérature sur l'ABC et proposition d'une taxinomie," Post-Print hal-00936600, HAL.
    5. Allan Hansen, 2011. "Relating performative and ostensive management accounting research," Qualitative Research in Accounting & Management, Emerald Group Publishing Limited, vol. 8(2), pages 108-138, June.
    6. Rodney Coyte & Martin Messner & Shan Zhou, 2022. "The revival of zero‐based budgeting: drivers and consequences of firm‐level adoptions," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(3), pages 3147-3188, September.
    7. Mohamed Ali Dakkam, 2018. "qui et à quoi sert la comptabilité ? Un état de l'art et quelques réflexions théoriques pour dépasser le déterminisme des différents paradigmes," Post-Print hal-01907865, HAL.
    8. Sophie Hoozée & Falconer Mitchell, 2018. "Who Influences the Design of Management Accounting Systems? An Exploratory Study," Australian Accounting Review, CPA Australia, vol. 28(3), pages 374-390, September.
    9. Maria-Victòria Sánchez-Rebull & Angels Niñerola & Ana-Beatriz Hernández-Lara, 2023. "After 30 Years, What Has Happened to Activity-Based Costing? A Systematic Literature Review," SAGE Open, , vol. 13(2), pages 21582440231, June.
    10. Mary A. Malina & Hanne S.O. Nørreklit & Frank H. Selto, 2011. "Lessons learned: advantages and disadvantages of mixed method research," Qualitative Research in Accounting & Management, Emerald Group Publishing Limited, vol. 8(1), pages 59-71, April.
    11. Ahrens, Thomas & Becker, Albrecht & Burns, John & Chapman, Christopher S. & Granlund, Markus & Habersam, Michael & Hansen, Allan & Khalifa, Rihab & Malmi, Teemu & Mennicken, Andrea & Mikes, Anette & P, 2008. "The future of interpretive accounting research—A polyphonic debate," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 19(6), pages 840-866.
    12. Christensen, Mark & Skærbæk, Peter, 2010. "Consultancy outputs and the purification of accounting technologies," Accounting, Organizations and Society, Elsevier, vol. 35(5), pages 524-545, July.
    13. Cardos Ildiko Reka & Pete Stefan, 2011. "Managerial And Cost Accounting Practices - A Romanian Overview," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 484-490, December.
    14. van Veen-Dirks, Paula, 2005. "Management control and the production environment: A review," International Journal of Production Economics, Elsevier, vol. 93(1), pages 263-272, January.
    15. Simon Alcouffe & Nadine Galy & Loïc Gaté, 2016. "Une méta-analyse qualitative de la littérature sur les déterminants de l'adoption de l'Activity-Based Costing (méthode ABC)," Post-Print hal-01900677, HAL.
    16. Eric Maton & Dragos Zelinschi, 2012. "La Diffusion Des Innovations Manageriales En Controle De Gestion, Une Approche Rhetorique," Post-Print hal-00691178, HAL.
    17. Zelinschi Dragoş, 2009. "Genèse Et Évolutions D'Une Innovation : La Méthode Abc," Post-Print halshs-00460128, HAL.
    18. Phillip C. James, 2013. "An Analysis of the Factors Influencing the Adoption of Activity Based Costing (ABC) in the Financial Sector in Jamaica," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 3(7), pages 8-18, July.
    19. Fasshauer, Ingrid, 2012. "Les interactions entre contrôle et stratégie : redéfinition du rôle des cadres intermédiaires et du levier interactif de contrôle," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/11150 edited by Berland, Nicolas.
    20. Phillip C. James, 2013. "An Analysis of the Factors Influencing the Adoption of Activity Based Costing (ABC) in the Financial Sector in Jamaica," International Journal of Business and Social Research, LAR Center Press, vol. 3(7), pages 8-18, July.

    More about this item

    Keywords

    ABC; ABM; implementation process; profitability;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ine:journl:v:1:y:2011:i:41:p:151-168. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Valentina Vasile (email available below). General contact details of provider: https://edirc.repec.org/data/inacaro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.