Considerations of Activity-Based Costing in the Public Sector: The Case of SASSA

Mashangu Justice Maluleke () and Merwe Oberholzer ()
Additional contact information
Mashangu Justice Maluleke: University of South Africa
Merwe Oberholzer: North-West University

Chapter Chapter 6 in Designing Cost Management Systems to Support Business Decision-Making, 2021, pp 107-123 from Springer

Abstract: Abstract Although South Africans face severe poverty, there is a governmental desire to address it with social security grants. However, the constant increase in beneficiaries directly affects the administration cost associated with the South African Social Security Agency’s (SASSA) social security grants system. This case study aimed to investigate activity-based costing (ABC) and activity-based budgeting (ABB) as alternate approaches to SASSA’s current costs management approach. The findings suggest that an activity-based management approach be implemented as an alternative method in SASSA on a pilot project basis. Even though the results of the study cannot be generalised, the lessons learnt from this study may be crucial for prospective public sector ABC-adopters including the factors to be considered for the successful implementation of ABC.

Keywords: Activity-based costing; Activity-based budgeting; Activity-based management; Indirect cost; Public sector costing; Social grants; M41 (Accounting); L88 (Government Policy); H41 (Public Goods) (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-981-16-1751-5_6

Ordering information: This item can be ordered from
http://www.springer.com/9789811617515

DOI: 10.1007/978-981-16-1751-5_6

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().