Optimizing the value of activity based costing system: The role of successful implementation
Year: 2020
Type: article
Study design: Observational Study
Abstract: Activity-based costing system (ABC) adopters reported different uses of the system, inconsistent amounts of benefits gained, and consequently varying levels of satisfaction with the system.This study aims to investigate the variation in the extent of use, the magnitude of benefits, and user satisfaction with the ABC.A structured questionnaire was sent to the manufacturing companies operating in Riyadh Province, Saudi Arabia.75 responses from ABC implementers were received.The results of this study show that the degree of ABC implementation success positively influences the extent of its use, the magnitude of benefits that have been obtained, and the overall user satisfaction with the system.These findings imply that irrespective of the characteristics of the company or the features of the system, the way the companies implement ABC might determine how much benefits can be gained and to what extent the system could be used.
Source: Management Science Letters
Author: Ahmed Abdullah Saad Al-Dhubaibi
Institution: Prince Sattam Bin Abdulaziz University
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W3082681783