Reasons for not changing to activity-based costing: a survey of Irish firms
Purpose – This paper aims to report on a survey of medium and large Irish firms to ascertain reasons for not changing to more advanced costing techniques, namely, activity-based costing (ABC). Developments in technology and recent poor economic conditions would suggest that the technique could be ad...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2017-04-01
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| Series: | PSU Research Review |
| Subjects: | |
| Online Access: | https://www.emeraldinsight.com/doi/pdfplus/10.1108/PRR-12-2016-0017 |
| _version_ | 1811185132684443648 |
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| author | Martin Quinn Otman Elafi Mark Mulgrew |
| author_facet | Martin Quinn Otman Elafi Mark Mulgrew |
| author_sort | Martin Quinn |
| collection | DOAJ |
| description | Purpose – This paper aims to report on a survey of medium and large Irish firms to ascertain reasons for not changing to more advanced costing techniques, namely, activity-based costing (ABC). Developments in technology and recent poor economic conditions would suggest that the technique could be adopted more by firms, as they make increased efforts to keep costs under control. Design/methodology/approach – A survey instrument was used to gather data drawing from the top 1,000 Irish firms. From a useable population of 821 organisations, a response rate of 20.75 per cent was achieved. Findings – Findings show a rate of adoption of ABC of 18.7 per cent, which is lower than previous studies in an Irish context. The level of information technology in firms is not a key factor for non-adoption. Instead, the main reasoning for non-adoption revolve around stable existing costing methods, which firms expressed satisfaction with. Originality/value – This research suggests the adoption of ABC is not necessarily driven by external factors such as technology and economic shocks, at least in the context of Ireland. It also suggests that costing techniques may be deeply embedded within organisations and are less likely to be subject to change. |
| first_indexed | 2024-04-11T13:24:13Z |
| format | Article |
| id | doaj.art-12f433c65c1c4d369251ff97a425c772 |
| institution | Directory Open Access Journal |
| issn | 2399-1747 2398-4007 |
| language | English |
| last_indexed | 2024-04-11T13:24:13Z |
| publishDate | 2017-04-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | PSU Research Review |
| spelling | doaj.art-12f433c65c1c4d369251ff97a425c7722022-12-22T04:22:07ZengEmerald PublishingPSU Research Review2399-17472398-40072017-04-0111637010.1108/PRR-12-2016-0017591243Reasons for not changing to activity-based costing: a survey of Irish firmsMartin Quinn0Otman Elafi1Mark Mulgrew2Dublin City University Business School, Dublin, IrelandSchool of Mechanical and Materials Engineering, University College Dublin, Dublin, IrelandSchool of Accounting, Finance and Economics, University of Ulster, Jordanstown, UKPurpose – This paper aims to report on a survey of medium and large Irish firms to ascertain reasons for not changing to more advanced costing techniques, namely, activity-based costing (ABC). Developments in technology and recent poor economic conditions would suggest that the technique could be adopted more by firms, as they make increased efforts to keep costs under control. Design/methodology/approach – A survey instrument was used to gather data drawing from the top 1,000 Irish firms. From a useable population of 821 organisations, a response rate of 20.75 per cent was achieved. Findings – Findings show a rate of adoption of ABC of 18.7 per cent, which is lower than previous studies in an Irish context. The level of information technology in firms is not a key factor for non-adoption. Instead, the main reasoning for non-adoption revolve around stable existing costing methods, which firms expressed satisfaction with. Originality/value – This research suggests the adoption of ABC is not necessarily driven by external factors such as technology and economic shocks, at least in the context of Ireland. It also suggests that costing techniques may be deeply embedded within organisations and are less likely to be subject to change.https://www.emeraldinsight.com/doi/pdfplus/10.1108/PRR-12-2016-0017Management accountingActivity-based costing |
| spellingShingle | Martin Quinn Otman Elafi Mark Mulgrew Reasons for not changing to activity-based costing: a survey of Irish firms PSU Research Review Management accounting Activity-based costing |
| title | Reasons for not changing to activity-based costing: a survey of Irish firms |
| title_full | Reasons for not changing to activity-based costing: a survey of Irish firms |
| title_fullStr | Reasons for not changing to activity-based costing: a survey of Irish firms |
| title_full_unstemmed | Reasons for not changing to activity-based costing: a survey of Irish firms |
| title_short | Reasons for not changing to activity-based costing: a survey of Irish firms |
| title_sort | reasons for not changing to activity based costing a survey of irish firms |
| topic | Management accounting Activity-based costing |
| url | https://www.emeraldinsight.com/doi/pdfplus/10.1108/PRR-12-2016-0017 |
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