Towards understanding sophistication process of a costing system change in an Australian local government organization

Ahmed, Rafiuddin (2011) Towards understanding sophistication process of a costing system change in an Australian local government organization. In: Proceedings of 2011 Government and Nonprofit Section Midyear Conference, pp. 1-31. From: 2011 Government and Nonprofit Section Midyear Conference, 18-19 March 2011, Birmingham, AL, USA.

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Abstract

This Australian study explores and reports the findings of costing system sophistication in a public sector city council. Using longitudinal data from primary and secondary sources, the study explores and refines the meanings of costing system sophistication, and the reasons for sophisticating a costing system. The study finds that sophisticating a costing system requires detailed understanding of the elements of indirect costs and judgements about inclusion of these costs in product cost calculations. The study reveals that the inclusion of indirect costs is dependent on the perceived benefits of these costs in costing calculations, and the perceived meanings given to these costs by its users. The study also finds that costing system sophistication is driven by institutional isomorphic pressures imposed from external constituencies, and is in line with the prescriptions of institutional theory advocates. In particular coercive isomorphic pressure is observed to have led the normative and mimetic pressures throughout the sophistication process.

Item ID: 21568
Item Type: Conference Item (Abstract / Summary)
Keywords: overhead costs, costing systems sophistication, Institutional theory, cost pool, cost drivers
Date Deposited: 21 May 2012 23:41
FoR Codes: 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1501 Accounting, Auditing and Accountability > 150105 Management Accounting @ 50%
15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1501 Accounting, Auditing and Accountability > 150102 Auditing and Accountability @ 50%
SEO Codes: 91 ECONOMIC FRAMEWORK > 9104 Management and Productivity > 910402 Management @ 50%
91 ECONOMIC FRAMEWORK > 9104 Management and Productivity > 910406 Technological and Organisational Innovation @ 50%
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