Coursework

Name- Mohammed Bhuiyan

ID-000668860

Coursework Header Sheet
198578-167

Course
Coursework
Tutor

ACCO1095: Management Accounting
Essay
KB Brickman

Course School/Level
Assessment Weight
Submission Deadline

BU/UG
30.00%
25/01/2013

Coursework is receipted on the understanding that it is the student 's own work and that it has not, in whole or part, been presented elsewhere for assessment. Where material has been used from other sources it has been properly acknowledged in accordance with the University 's Regulations regarding Cheating and Plagiarism.

000668860

Mohammed Bhuiyan

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Tutor______________________

Name- Mohammed Bhuiyan

ID-000668860

“ABC is still relevant for companies in all geographical locations – critically discuss”
The theory of activity based costing (ABC) was developed in 1970’s to understand the product and customer cost and profitability based on the production or performing process in the manufacturing center of United State (Glad & Becker, 1996). Later, it got the reorganization after getting introduced by Kaplan and Copper in 1980’s (Glad & Becker, 1996) to the whole world. ABC assists companies in strategic decisions like pricing, budgeting and outsourcing. In this competitive world, when companies are trying to utilize more efficient way of costing, ABC was argued to be a solution for them (Jonson & Kaplan, 1987 as cited in Benjamin et al, 2009).
Although ABC has lost its popularity since 1990, Stratton et al (2009) stated that the usage rate is still between 50% and 70%. Still, ABC is a dependable way of costing for companies from
Europe, Asia and other regions people. This essay will critically discuss the usage of ABC in a geographical context to show their relevance in the modern time. The examples of several countries are

References: Baykasoglu & Kaplanoglu (2008), Application of activity-based costing to a land transportation company: A case study, International journal of production economics, pg- 308-324 Benjamin, Muthaiyah, Marathamutu (2009), An Improved Methodology For Absorption Costing: Efficiency Based Absorption Costing (EBAC), The journal of Applied Business research,25,pg 87-100 Cotton, Jackman & Brown (2003), Note on a New Zealand replication of the Innes et al. UK activity-based costing survey, Management Accounting Research, 14, pg 67-72 Doyle, Duffy & McCahey (2004), An Empirical Study of Adoption/Non-adoption of Activity based costing in Ireland, Accounting Subject Area UCD Business School, pg 4-36 Gunasekaran & Sarhadi (1998), Implementation of activity-based costing in manufacturing, International Journal of Production Economics, 56-57, pg 231-242 Gupta M & Galloway K (2003), Activity-based costing/management and its implications for operations management, College of Business and Public Administration, University of Louisville, 23, pg 131-138 Glad & Becker (1996), Activity management based costing and management, Shortcoming of Traditional Cost Accounting, pg 1-10 Joachim, Clarke & Morton (2004), Activity Based Costing (ABC) in Australia, CIMA Australia, pg 1-8 Kaplan &Anderson (2004), Time-Driven Activity-Based Costing, Harvard Business Review, pg-134-138 Liua & Paub (2011), Activity based costing in China: a case study of Xu Ji Electric Co. Ltd, Newcastle University Business School, 7, pg 1-13 Liuc & Pand (2007), The implementation of Activity-Based Costing in China: An innovation action research approach, The British Accounting Review, 39, pg 249-264 Major & Hopper (2005), Managers divided: Implementing ABC in a Portuguese telecommunications company, Management Accounting Research, 16, pg 205-229 Malmi (1997), Towards explaining activity-based costing failure: accounting and control in a decentralized organization, Management Accounting Research, 8, pg 459-480 Pavaltos & Paggois (2009), ACTIVITY-BASED COSTING IN THE HOSPITALITY INDUSTRY: EVIDENCE FROM GREECE, International Council on Hotel, Restaurant, and Institutional Education, pg 511-527 Pike, Tayles & Mansor (2011), Activity-based costing user satisfaction and type of system: A research note, The British Accounting Review, 43, pg 65-72 Stratton, Desroches, Lawson & Hatch (2009), Activity-Based Costing: Is It Still Relevant?, Management