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ABC (Absorption Based Costing ) is a new way of doing business as it offer different responses to costs. ABC does not focus on budget

ABC (Absorption Based Costing ) is a new way of doing business as it offer different responses to costs. ABC does not focus on budget or the performance of departments and this could cause some resistance in the management that is confortable with the previous system. They could feel threatened by the introduction of ABC. Changes are a treat specially to the areas of the business that will be directly impacted by the new system, such as the areas that work with the product line, as the ABC compromises its profitability.

A) For a succesfull implementation of the ABC system, what strategies would you use and consider to prevent barriers/problems that could happen during the process of implementation?

B) What steps would you suggest as a plan of action in order to implement the ABC in the business?

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