Activity Based Costing Essay

1118 words - 5 pages

Robert S. Kaplan and Robin Cooper was designed the activity based costing (ABC) method in 1988. It was felt that there was a need for more accurate and up-to-date information and a more proactive approach to planning and managing the costs. ABC is a process to identify the costs of all activities and allocating, applying, assigning or tracing costs to products. Activity based costing is a costing technique, tool, system, mechanism or approach. It may be used in addition to the current traditional system or used in place of it. This will enable the new system to be applied consistently so that the opportunity to revert to old ways is limited. Activity based costing is aims to cost the ...view middle of the document...

The culture is one of the factors that influence the successful implementation of new technique. The Thailand accounting education and nature of Thai business culture are affected. First, Thai accounting education is based on accounting theory and practice in the United States. A lack of government support and the negative influence of social and cultural factors on the accounting profession are important barriers to the development of education and practice in accounting in Thailand. Since the accounting profession in Thailand is not perceived to be an important and prestigious profession. Inadequate public recognition of the role of accounting, inactive professional accounting societies and the lack of an adequate number of accounting publications are also perceived to be major professional obstacles by Thai accounting educators and practicing accountants.
In Thailand business culture, ABC has very great influence such as their shared beliefs, the principles and the norms that affect organizational action taking. Since the cultural values influence behaviours of people organizations and the learning process. The business culture also has an important role in the operation of companies. One of the reasons to affect the implementation of ABC in Thailand is national culture. It influences the design and the use of management systems. In the different countries they are implementation different types of management techniques and practices to fulfill their business. Besides that, Thai subordinates recognized the hierarchical order and their bosses’ leadership. The Thai subordinates afraid to argue with their bosses only will do what their boss tells them to do within their capabilities. The concepts show that they are in collectivistic society.
In additional, the top management is the most important factor transforming the attitudes, behaviours and structure of Thai organizational. Top management is the people need to learn an ABC approach and accepts organizational change. Then, the ABC may become more widely adopted and implemented in Thai organizations on the grounds that people from a high-power-distance culture, as Thai people, tend to be obedient to their superiors. While, the top management in India firm they prefer to the cross-functional teams. It is the process orientation and adequate training to the employees on the ABC. This process is the linkages work so it shows their initiative between activity-based team
The top management support, technology sophistication, large size firms, and...

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