Application of Activity-Based Costing Management System by Key Success Paths to Promote the Competitive Advantages and Operation Performance
Highly developed technology and highly competitive
global market highlight the important role of competitive advantages
and operation performances in sustainable company operation.
Activity-Based Costing (ABC) provides accurate operation cost and
operation performance information. Rich literatures provide relevant
research with cases study on Activity-Based Costing application, but
the research on cause relationship between key success factors and its
specific outcome, such as profitability or share market are few. These
relationships provide the ways to handle the key success factors to
achieve the specific outcomes for ensuring to promote the competitive
advantages and operation performances. The main purposes of this
research are exploring the key success paths by Key Success Paths
approach which will lead the ways to apply Activity-Base Costing.
The Key Success Paths is the innovative method which is exploring
the cause relationships and explaining what are the effects of key
success factors to specific outcomes of Activity-Based Costing
implementation. The cause relationships between key success factors
and successful specific outcomes are Key Success Paths (KSPs). KSPs
are the guidelines to lead the cost management strategies to achieve the
goals of competitive advantages and operation performances. The
research findings indicate that good management system design may
affect the well outcomes of Activity-Based Costing application and
achieve to outstanding competitive advantage, operating performance
and profitability as well by KSPs exploration.
[1] Cooper and Kaplan, “Measure Cost Right: Make the Right Decision,”
Harvard Business Review, pp. 96-103, 1988.
[2] Pernot, E., Roodhooft, F. & Van den Abbeele, A. “Time-driven
activity-based costing for interlibrary services: A case study in a
university.” The Journal of Academic Librarianship, vol. 33, no. 5, pp.
551-560, 2007.
[3] Ask and Ax, “Trends in the Development of Product Costing Practices
and Techniques-A Survey of the Swedish Manufacturing Industry,”
Department of Business Administration, Gothenburg School of
Economics and Commercial Law, 1992.
[4] Bright et al, “The Deployment of Costing Techniques and Practices: A
UK Study,” Management Accounting Research, vol. 3, pp.201-211,
1992.
[5] Innes and Falconer, “A survey of activity-based costing in the U.K.'s
largest companies,” Management Accounting Research, 1995.
[6] Ragin, Charles C., “Fuzzy-Set Social Science. Chicago: University of
Chicago Press,” 2000.
[7] Anderson and Young, “Reading in Management Accounting,” 2rd ed.,
pp.103-116, 1997.
[8] Ashworth and Evans, “Activity-Based Management: Moving Beyond
Adolescence,” Management Accounting-London, 1995.
[9] Cheng C. Z., “Research on Key Factors of Impacting on Cost System
Adoption—Case Study of Activity-Based Costing System,” 2000.
[10] Chung J. Y., “Research on the printing plant of military By
Activity-Based Costing,” 2000.
[11] Nu U. C., “The Application of ABC In Maintain of Military aircraft,”
2005.
[12] Liu Y. C., “Research on Budget System by Integrating BSC and
ABC—Case Study of Keelung Port Bureau,” 2004.
[13] Lin U. C., “Plan and Design of ABC—Case Study of Motor vehicles
components manufacturing,” 2004.
[14] Wu M. F., and Chang P. L., “An innovative new product development
strategy: The key success paths approach,” International Journal of the
Physical Sciences, vol. 6, no. 25, pp.5922-5936, 2011.
[1] Cooper and Kaplan, “Measure Cost Right: Make the Right Decision,”
Harvard Business Review, pp. 96-103, 1988.
[2] Pernot, E., Roodhooft, F. & Van den Abbeele, A. “Time-driven
activity-based costing for interlibrary services: A case study in a
university.” The Journal of Academic Librarianship, vol. 33, no. 5, pp.
551-560, 2007.
[3] Ask and Ax, “Trends in the Development of Product Costing Practices
and Techniques-A Survey of the Swedish Manufacturing Industry,”
Department of Business Administration, Gothenburg School of
Economics and Commercial Law, 1992.
[4] Bright et al, “The Deployment of Costing Techniques and Practices: A
UK Study,” Management Accounting Research, vol. 3, pp.201-211,
1992.
[5] Innes and Falconer, “A survey of activity-based costing in the U.K.'s
largest companies,” Management Accounting Research, 1995.
[6] Ragin, Charles C., “Fuzzy-Set Social Science. Chicago: University of
Chicago Press,” 2000.
[7] Anderson and Young, “Reading in Management Accounting,” 2rd ed.,
pp.103-116, 1997.
[8] Ashworth and Evans, “Activity-Based Management: Moving Beyond
Adolescence,” Management Accounting-London, 1995.
[9] Cheng C. Z., “Research on Key Factors of Impacting on Cost System
Adoption—Case Study of Activity-Based Costing System,” 2000.
[10] Chung J. Y., “Research on the printing plant of military By
Activity-Based Costing,” 2000.
[11] Nu U. C., “The Application of ABC In Maintain of Military aircraft,”
2005.
[12] Liu Y. C., “Research on Budget System by Integrating BSC and
ABC—Case Study of Keelung Port Bureau,” 2004.
[13] Lin U. C., “Plan and Design of ABC—Case Study of Motor vehicles
components manufacturing,” 2004.
[14] Wu M. F., and Chang P. L., “An innovative new product development
strategy: The key success paths approach,” International Journal of the
Physical Sciences, vol. 6, no. 25, pp.5922-5936, 2011.
@article{"International Journal of Business, Human and Social Sciences:71449", author = "Mei-Fang Wu and Shu-Li Wang and Feng-Tsung Cheng", title = "Application of Activity-Based Costing Management System by Key Success Paths to Promote the Competitive Advantages and Operation Performance", abstract = "Highly developed technology and highly competitive
global market highlight the important role of competitive advantages
and operation performances in sustainable company operation.
Activity-Based Costing (ABC) provides accurate operation cost and
operation performance information. Rich literatures provide relevant
research with cases study on Activity-Based Costing application, but
the research on cause relationship between key success factors and its
specific outcome, such as profitability or share market are few. These
relationships provide the ways to handle the key success factors to
achieve the specific outcomes for ensuring to promote the competitive
advantages and operation performances. The main purposes of this
research are exploring the key success paths by Key Success Paths
approach which will lead the ways to apply Activity-Base Costing.
The Key Success Paths is the innovative method which is exploring
the cause relationships and explaining what are the effects of key
success factors to specific outcomes of Activity-Based Costing
implementation. The cause relationships between key success factors
and successful specific outcomes are Key Success Paths (KSPs). KSPs
are the guidelines to lead the cost management strategies to achieve the
goals of competitive advantages and operation performances. The
research findings indicate that good management system design may
affect the well outcomes of Activity-Based Costing application and
achieve to outstanding competitive advantage, operating performance
and profitability as well by KSPs exploration.", keywords = "Activity-Based Costing, Key success factors, Key
success paths approach, Key success paths, Key failure paths.", volume = "9", number = "11", pages = "3922-6", }