On trying to understand an activity based costing failure: a Singaporean case study

Ahmed, Rafiuddin, and Desti, Kannaiah (2017) On trying to understand an activity based costing failure: a Singaporean case study. In: [Presented at the 2017 Critical Perspectives on Accounting Conference]. 283. From: 2017 Critical Perspectives on Accounting Conference, 3-5 July 2017, Québec City, Canada.

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Activity Based Costing (ABC) costing literature is replete with success stories. This paper is one of the very few which reports the findings from an ABC failure experience in a Singaporean multinational company. The data for this study was collected from surveys of questionnaires and interviews over a year. Using common protocols for analyzing data, we have found that an ABC system can fail even after all the measures of a successful implementation are taken. These factors relate to organizational and human factors and confirmed some prior observed ABC failure factors and revealed some new factors. We have also observed that the ABC was abandoned half way through the implementation stage. These findings were explained in light of information system failure theories. The explanation of these findings in light of IS failure theory has contributed to our understanding of an ABC project from an information systems perspective. The findings have implications for managers and practitioners in that an ABC system needs to be seen from a systems perspective and should draw and actively engage people from cross sections of an organization, apart from the commonly observed factors reported in the accounting literature.

Item ID: 61384
Item Type: Conference Item (Presentation)
Keywords: ABC system, information system failure, stage model, employee resistance, organizational factors, technical factors.
Copyright Information: Restricted to conference participants only (a policy of Critical Perspectives on Conference organizers).
Date Deposited: 07 Jul 2022 00:33
FoR Codes: 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3501 Accounting, auditing and accountability > 350105 Management accounting @ 70%
46 INFORMATION AND COMPUTING SCIENCES > 4609 Information systems > 460909 Information systems philosophy, research methods and theory @ 30%
SEO Codes: 93 EDUCATION AND TRAINING > 9305 Education and Training Systems > 930502 Management of Education and Training Systems @ 20%
89 INFORMATION AND COMMUNICATION SERVICES > 8902 Computer Software and Services > 890205 Information Processing Services (incl. Data Entry and Capture) @ 20%
91 ECONOMIC FRAMEWORK > 9104 Management and Productivity > 910406 Technological and Organisational Innovation @ 60%
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