STUDY ON ACTIVITY BASED COSTING AND ITS BENEFIT, COST AND IMPLEMENTATION: AN INDIAN PERSPECTIVEJournal: SCHOLARLY RESEARCH JOURNAL FOR INTERDISCIPLINARY STUDIES (Vol.6, No. 51)
Publication Date: 2019-07-01
Authors : Krushnavadan R. Parmar;
Page : 12512-12519
Keywords : _activity-based costing; costing system; traditional costing;
This research paper discuss how the importance of adopting activity-based costing for the company in order to carry out its business strategy. One objective is to implement activity based costing cost efficiency by cutting costs incurred for non-value added activity. But the phenomenon shows that there are still many companies / organizations are not interested in adopting the activity based costing. Many companies do not gain a competitive advantage from the increased cost systems because they rely on information from the system cost that is designed for simple technology when the competition was local and not global, and the company produces standard products and services as well as the speed, quality and performance is less important for success. Use of this system manager does not have the information that is timely and relevant to guide the improvement activities that they do, and they do not have valid and accurate information to make their strategic decisions about processes, products, services and customers. This article also outlines the advantages and limitations in adopting activity based costing for the company.
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