Evidence suggests that ABM implementations are more likely to succeed in more open organizations. The ground is
Question:
Evidence suggests that ABM implementations are more likely to succeed in more open organizations. 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.
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.
Step by Step Answer:
Cost Accounting Traditions And Innovations
ISBN: 9780324180909
5th Edition
Authors: Jesse T. Barfield, Cecily A. Raiborn, Michael R. Kinney