Abstract—In today’s advanced manufacturing and
competitive environment, accurate costing information is
crucial for all the kinds of businesses, such as manufacturing
firms, merchandizing firms, and service firms. Argued to be
superior to the traditional volume-based costing system,
Activity-Based Costing system (ABC) has increasingly attracted
the attention of practitioners and researchers alike as one of the
strategic tools to aid managers for better decision making. The
benefits of ABC system and its impacts on companies’
performance have motivated numerous empirical studies on
ABC system and it is considered as one of the most-researched
management accounting areas in developed countries. Previous
research on ABC have examined pertinent issues related to
ABC implementation such as the levels of ABC adoption in
various countries, the reasons for implementing ABC, the
problems related to ABC and the critical success factors
influencing ABC. This paper reviews the research on ABC
carried out within the last decade, from 1995-2008, and from
the review research gaps are identified. Specifically, this paper
examines the selection of factors influencing successful ABC
implementation, variables used by previous research and the
definitions and operationalization of the variables. The review
reveals that past research concentrated mainly on behavioral,
organizational, and technical variables as the main
determinants of ABC success but very little research have been
done to examine the roles of organizational culture and
structure. Based on the research gaps identified, a research
framework for future research is provided.
Index Terms—Advanced Manufacturing Environment,
Activity-Based Costing, ABC Success.
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Cite:Zhang Yi Fei and Che Ruhana Isa, "Factors Influencing Activity-Based Costing Success: A Research Framework," International Journal of Trade, Economics and Finance vol.1, no.2, pp. 144-150, 2010.