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Exploration of Factors Influencing on Choice the Activity-Based Costing System in Iranian Organizations

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  • Taha Ahmadzadeh
  • Hossien Etemadi
  • Ahmed Pifeh

Abstract

As a tool for planning and control, costing systems play a considerable role in providing information needs for managers. Given the diversity of costing systems and simultaneous advancement of new costing systems, choosing a costing system may challenge managers. This research seeks to explore such organizational factors as organization size, industry type, cost structure, the importance of cost information, and products and services diversity on adopting Activity-Based costing (ABC) system in the listed companies of the Tehran Stock Exchange. Using logistic regression model from 33.5% of respondents in the sample, the results of this survey study indicates a positive relationship among cost structure, the importance of cost information and products and services diversity (in term of products and services liner numbers). It also indicates a negative relationship among the type of industry, organization size and product and services diversity (in terms of support diversity and volume diversity) with adopting the mentioned system. There was not any significant relationship between above organizational factors and choice of the ABC system.

Suggested Citation

  • Taha Ahmadzadeh & Hossien Etemadi & Ahmed Pifeh, 2011. "Exploration of Factors Influencing on Choice the Activity-Based Costing System in Iranian Organizations," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 2(1), pages 61-70, February.
    • Handle: RePEc:jfr:ijba11:v:2:y:2011:i:1:p:61-70
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    References listed on IDEAS

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    1. Gosselin, Maurice, 1997. "The effect of strategy and organizational structure on the adoption and implementation of activity-based costing," Accounting, Organizations and Society, Elsevier, vol. 22(2), pages 105-122, February.
    2. Drury, Colin & Tayles, Mike, 2005. "Explicating the design of overhead absorption procedures in UK organizations," The British Accounting Review, Elsevier, vol. 37(1), pages 47-84.
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    Cited by:

    1. Domenico Raucci & Dominique Lepore, 2020. "A Simplified Activity-Based Costing Approach for SMEs: The Case Study of an Italian Small Road Company," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 198-214.
    2. 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.
    3. Simon Alcouffe & Jonathan Maurice & Nadine Galy & Loïc Gate, 2019. "Is the limited diffusion of management accounting innovations really a paradox? A meta-analysis of the relationship between product diversity and the adoption of Activity-Based Costing [La faible d," Post-Print hal-02124677, HAL.
    4. Abedalqader Rbaba’h, 2013. "The influence of Company Characteristics Factors to Activity Based Costing System Implementation," Journal of Education and Vocational Research, AMH International, vol. 4(2), pages 36-46.
    5. Alcouffe, Simon & Galy, Nadine & Gaté, Loïc, 2016. "Une méta-analyse qualitative de la littérature sur les déterminants de l'adoption de l'activity-based costing [A meta-analysis of the literature on the determinants of the adoption of activity-base," MPRA Paper 73381, University Library of Munich, Germany.

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