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Implementation of activity based costing in Malaysia: A case study of two companies

Abdul Majid, Jamaliah and Sulaiman, Maliah (2008) Implementation of activity based costing in Malaysia: A case study of two companies. Asian Review of Accounting, 16 (1). pp. 39-55. ISSN 1321-7348

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Purpose– The study aims to document and highlight the problems and benefits of implementing activity‐based costing (ABC) in two companies in Malaysia.Design/methodology/approach– A case study methodology was used to describe the process of ABC implementation in a Malaysian based multinational company as well as a Malaysian multinational company.Findings– Although ABC is not widely adopted by companies in Malaysia, it is recognized as a valuable tool to improve the performance of these two companies. Additionally, many of the problems that hinder the implementation of ABC are related to managerial factors rather than the technical aspects of the tool itself. Several factors are pertinent to ensure the success of ABC: top management support, simplifying the ABC implementation process, sourcing suitable ABC software, and finally, ensuring that all affected employees understand and actively support the implementation process. Originality/value– The findings have significant implications for companies that want to embark on ABC.The problems highlighted may help companies planning to adopt ABC in the near future to better address these issues.

Item Type: Article
Uncontrolled Keywords: Activity based costs, Malaysia, Case studies, Multinational companies
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
Depositing User: Dr. Jamaliah Abdul Majid
Date Deposited: 26 Oct 2014 01:24
Last Modified: 26 Apr 2016 00:41

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