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Accounting, Organizations and Society 33 (2008) 1вЂ“19 www.elsevier.com/locate/aos
The role of producing practices in mediating the effect of activity-based costing in plant overall performance Rajiv G. Banker a, Indranil 3rd there’s r. Bardhan
a Fox College of Organization, Temple College or university, 1810 And. 13th Avenue, Philadelphia, PA 19122, UNITED STATES The School of Tx at Based in dallas, School of Management, SM 41, 2601 N. Floyd Road, Richardson, TX 75083-0688, USA c School of Business and Management, Hk University of Science and Technology, Clearwater Bay, Kowloon, Hong Kong, China and tiawan
Abstract We study the effect of activity-based costing (ABC) on usage of world class manufacturing (WCM) practices and plant efficiency. In contrast to previous research that estimates the direct influence of FONEM on grow performance, we all develop an alternative research model to study the role of world-class manufacturing practices being a mediator with the impact of ABC. Analysis of data by a large cross-sectional sample people manufacturing plants signifies that DASAR has no signiп¬Ѓcant direct effect on plant overall performance, as scored by advancements in unit manufacturing costs, cycle time, and merchandise quality. All of us п¬Ѓnd, nevertheless , that WCM practices completely mediate the positive impact of ABC upon plant functionality, and thus advanced manufacturing features represent a crucial missing website link in understanding the complete impact of ABC. Each of our results offer a diп¬Ђerent conceptual lens to evaluate the relationship between ABC usage and grow performance, and suggest that FONEM adoption alone does not improve plant functionality. Г“ 06\ Elsevier Limited. All rights reserved.
Intro Activity-based charging (ABC) was created with the objective of providing managers with correct activity-based cost information by using cost individuals to designate activity costs to items * Corresponding author. Tel.: +1 972 883 2736; fax: +1 972 883 6811. Email addresses: [email protected] edu (R. D. Banker), [email protected] edu (I. 3rd there’s r. Bardhan), [email protected] hk (T. -Y. Chen).
and solutions. Proponents of ABC argue that it provides appropriate cost data needed to generate appropriate strategic decisions when it comes to product mixture, sourcing, costs, process improvement, and analysis of organization process efficiency (Cooper & Kaplan, 1992; Swenson, 1995). These says may possess led many п¬Ѓrms to take on ABC systems. A study of the a thousand largest п¬Ѓrms in the United Kingdom confirmed that nineteen. 5% of the companies have got adopted ABC (Innes & Mitchell, 1995). Another study released by Cost Management
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R. G. Banker ou al. / Accounting, Agencies and Culture 33 (2008) 1вЂ“19
Group (1998) of the Institute of Management Accountancy firm indicated that 39% of organizations possess approved HURUF adoption. you Assessing the impact of FONEM on manufacturer performance is known as an important exploration question. Prior research has typically focused on the direct impact of FONEM while disregarding its roundabout impact in supporting other organizational capabilities. While previous studies include reported average levels of beneп¬Ѓts from ABC adoption (Foster & Swenson, 1997; Ittner & Larcker, 2001), handful of have prolonged this operate to evaluate the linkages among вЂвЂbeliefs'' that represent powerful outcomes as well as the operational procedures of herb performance. Furthermore, the deп¬Ѓnition of FONEM success features often recently been vaguely deп¬Ѓned in terms of subjective beliefs concerning вЂвЂп¬Ѓnancial beneп¬Ѓt'', вЂвЂsatisfaction with ABC'', or вЂвЂuse of ABC system for decision making''. In light of these methodological deп¬Ѓciencies, we argue that a much more rigorous strategy is needed to gauge the impact of ABC. It is also important to concentrate on process-level performance measures, rather than п¬Ѓrm-level п¬Ѓnancial metrics, since the potential effect of ABC implementation may be...
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All of us combined the п¬Ѓrst two categories as one. Therefore , 0 = zero ABC rendering, while one particular = intensive implementation. 16 For easy analyses, we all combined the 2nd and third categories into one. Hence, zero = none or some execution, while you = considerable implementation. 12-15 To facilitate analyses, we grouped the rose performance classes in the unique survey into a п¬Ѓve- or perhaps seven-point Likert scale.
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