Factors Affecting Implementation of Activity Based Costing in Selected Manufacturing Units in India

Amit Kumar Arora and M.S.S. Raju
Additional contact information
Amit Kumar Arora: KIET, Group of Institutions, Ghaziabad and Research Scholar - IGNOU, New Delhi, India
M.S.S. Raju: IGNOU, New Delhi, India

International Journal of Risk and Contingency Management (IJRCM), 2019, vol. 8, issue 3, 18-30

Abstract: The present article is an attempt to analyze the various factors affecting the adoption of an activity-based costing (ABC) system in selected manufacturing units in India. The following seven factors are considered: firm size, diversity of the product, percentage of overhead cost in total cost, listing of the company, cost audit compulsion, separate cost accounting department and the method of accounting. Logistic regression and a Chi Square test are applied to these factors and the use of an ABC system. On the basis of 72 sample units, the study found the size of the firm, percentage of overhead cost in total cost, cost audit compulsion and the method of accounting are statistically significant for the adoption of ABC system. While factors such as diversity of the product, separate cost accounting department and the listing of the company are found to not be statistically significant for the adoption of ABC system. The study has provided additional insights into areas relating to the factors affecting the implementation of ABC systems.

Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
http://services.igi-global.com/resolvedoi/resolve. ... 018/IJRCM.2019070102 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:igg:jrcm00:v:8:y:2019:i:3:p:18-30

Access Statistics for this article

International Journal of Risk and Contingency Management (IJRCM) is currently edited by Narasimha Rao Vajjhala

More articles in International Journal of Risk and Contingency Management (IJRCM) from IGI Global
Bibliographic data for series maintained by Journal Editor ().