Activity-based costing user satisfaction and type of system: A research note

• Published in: The British accounting review Vol. 43; no. 1; pp. 65 - 72
• Main Authors: Pike, Richard H., Tayles, Mike E., Mansor, Nur Naha Abu
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.03.2011
• Subjects: Activity-based costing (ABC); Business management; Cost accounting; Cost-benefit analysis; Decision analysis; Development team inputs; Information; Southeast Asia; System performance; System type; Systems analysis; Telecommunication service provider; Telecommunications industry; User satisfaction; Telecommunication service provider; System type; User satisfaction; System performance; Development team inputs; Activity-based costing (ABC)
• ISSN: 0890-8389; 1095-8347
• DOI: 10.1016/j.bar.2010.12.001

This paper examines user perceptions of Activity-based costing (ABC) performance for three different types of system in a major information and communication provider in South East Asia. Few prior ABC studies have considered the effect of system type on ABC performance. The study draws on a survey of 54 developers and 181 users of 16 different ABC systems within the organisation to produce five performance constructs (cost accuracy, cost-benefit trade-off, ABC impact, information use, and decision action). The results show that both the development inputs and user performance perceptions varied with the type of system (embedded, stand-alone, ad-hoc). While embedded systems enjoyed far stronger inputs (e.g. top management support, rewards and recognition, task significance) and greater development team cohesion than stand-alone systems, they were perceived by users to perform significantly less well. These findings suggest that system type is an important factor in assessing ABC performance.