A framework for assessing cost management system changes: the case of activity-based costing implementation at food industry

• Main Authors: Tayebeh Faraji, Ali Esmailzade Maghari, Niloufar Mirsepasi
• Format: Article
• Language: English
• Published: Growing Science 2015-04-01
• Series: Management Science Letters
• Subjects: Activity based cost; ABC; Food industry
• Online Access: http://www.growingscience.com/msl/Vol5/msl_2015_17.pdf

An opportunity to investigate the technical and organizational effect of management accounting system changes has appeared with companies' adoption of activity-based costing (ABC). This paper presents an empirical investigation to study the effects of ABC system for case study from food industry in Iran. From this case, the paper develops a framework for assessing ABC implementation and hypotheses about factors that influence implementation. The study detects five cost centers and for each cost center, it determines different cost drivers. The results of our survey has detected that implementation of ABC system not only helps precise allocation of overhead costs but also helps internal management companies for better planning and control of production, making better decisions for company's profits.