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An Overview On The Adoption And Implementation Of Activity - Based Costing In Practice

Author

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  • Ildikó Réka CARDOS

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

  • Stefan PETE

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

  • Vasile Daniel CARDOS

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

Abstract

In recent years activity - based costing has attracted the interest of both academics and management accountants since its emergence. Researchers and academics believe that activity - based costing (ABC) is a new managerial accounting technique which could enhance the business orientation of managerial accounting and help business decisions and taking control in an increasingly sophisticated way (Jarvenpaa, 2007). Despite the great interest coming from researchers, companies seem to be reluctant to adopt ABC. A great number of surveys show that the dissemination of ABC has not been as intense as expected. The objective of this paper is to examine how ABC was adopted and implemented worldwide and within Romanian companies; what were the major challenges identified when adopting and implementing ABC; what are the main advantages and disadvantages of such a cost system. To achieve this objective we begin with the analysis of the existing literature in the field and previous studies made at international level, followed by a questionnaire - based empirical study and analysis of ABC implementation within Romanian companies.

Suggested Citation

  • 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.
    • Handle: RePEc:ine:journl:v:2:y:2012:i:44:p:185-200
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    References listed on IDEAS

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    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. 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.
    3. 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.
    4. Odysseas Pavlatos, 2009. "Management accounting practices in the Greek hospitality industry," Managerial Auditing Journal, Emerald Group Publishing, vol. 24(1), pages 81-98, January.
    5. Chenhall, Robert H., 2003. "Management control systems design within its organizational context: findings from contingency-based research and directions for the future," Accounting, Organizations and Society, Elsevier, vol. 28(2-3), pages 127-168.
    6. 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.
    7. V.G. Narayanan & Ratna G. Sarkar, 2002. "The Impact of Activity‐Based Costing on Managerial Decisions at Insteel Industries—A Field Study," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 11(2), pages 257-288, June.
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    Cited by:

    1. Karim Charaf & Ahmed Fath-Allah Rahmouni, 2014. "Using Importance Performance Analysis to Evaluate the Satisfaction of Activity-Based Costing Adopters," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 13(4), pages 665-685, December.

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    More about this item

    Keywords

    managerial accounting; activity - based costing; adoption and implementation; survey; Romania;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

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