Title: Strategy and activity based costing: a cross national study of process and outcome contingencies

Authors: Alnoor Bhimani, Maurice Gosselin, Mthuli Ncube

Addresses: London School of Economics, Houghton Street, London WC2A 2AE, UK. ' Universite Laval, Quebec City G1K 7P4, Canada. ' Wits Business School, University of Witwatersrand, 2 St Davids Place, Parketown, Johannesburg, South Africa

Abstract: This investigation assesses the associations between strategy and experiences with activity based costing (ABC). Experience with ABC has two elements – processes and outcomes. The study considers strategy based process contingencies in relation to the decision to implement ABC, as well as the extent and speed of implementation. Outcome contingency is considered in terms of the perceived success of ABC implementation. A questionnaire was developed to collect information on corporate costing experiences and strategic orientation across organisations in seven countries. The results of the study suggest the prevalence of outcome based rather than process based dependencies between ABC and corporate strategy orientation.

Keywords: activity based costing; ABC implementation; corporate strategy; process contingencies; outcomes; corporate costing; cross-national study; business strategy.

DOI: 10.1504/IJAAPE.2005.007672

International Journal of Accounting, Auditing and Performance Evaluation, 2005 Vol.2 No.3, pp.187 - 205

Published online: 01 Sep 2005 *

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