Is the activity based costing system a viable instrument for small and medium enterprises? The case of Mexico

• Main Authors: Martha Ríos-Manríquez, Clara I. Muñoz Colomina, M. Lourdes Rodríguez-Vilariño Pastor
• Format: Article
• Language: Spanish
• Published: Universidad ICESI 2014-07-01
• Series: Estudios Gerenciales
• Subjects: Small and medium enterprises; Activity-based costs; Traditional cost systems; Mexico
• Online Access: http://www.sciencedirect.com/science/article/pii/S012359231400093X

Small and medium-sized firms (SMEs) face serious challenges in order to be competitive, and they need to develop strategies enabling them to control their costs. This work aims to analyze and evaluate the impact, penetration and characteristics of Activity-Based Costs (ABC). This research is of a quantitative type descriptive design, with a sample of 180 SMEs. The results show low penetration of the ABC in SMEs using traditional systems, due to the lack of knowledge, and that there are enterprises that do not use any costing system at all. Finally the Mexican SMEs recognize the compatibility and usefulness of ABC, and that the most important fact is to understand the possible application of different costing methodologies for different purposes.