Evidence suggests that ABM implementations are more likely to succeed in more open organi zations. The ground

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Evidence suggests that ABM implementations are more likely to succeed in more open organi¬ zations. The ground is especially fertile for companies that have a stated interest in becoming world-class competitors and have backed these ambitions up with other initiatives. ABM dovetails with these initiatives, and they reinforce each other. A clear commitment from top management is also essential.

Ethics and Quality Discussion

[SOURCE: Helen Thorne and Bruce Gurd, “Some Human Aspects of Implementing Activity-

Based Management,” Journal of Cost Management (Fall 1995), p. 51.]

a. What are some of the “other initiatives” to which the article would be referring?

b. How might activity-based management and activity-based costing help a company in its quest to achieve world-class status?

c. Would it be equally important to have top management support if a company was instituting activity-based costing rather than activity-based management? Justify your answer.

d. Assume you are a member of top management in a large organization. Do you think implementation of ABM or ABC would be more valuable? Explain the rationale for your answer.

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Cost Accounting Traditions And Innovations

ISBN: 9780538880473

3rd Edition

Authors: Jesse T. Barfield, Cecily A. Raiborn, Michael R. Kinney

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