Empirical Investigation of ABC: An Evolutionary Implementation
1998 (English)Report (Other academic)
The concept of Activity Based Costing often has a different meaning to academic
researchers and to people involved in business. As organizations are rapidly
changing in ways we have never seen or could have expected, theories are often
corrected by reality found in business. In the world of rapidly changing global
environments complex problems within companies more often are solved through
the use of integrated multi-dimensional variables. With reference to the theorydevelopment
of ABC we have focused on problems with implementation of ABC
in a very specialized service organization.
This article deals with three parts involved in one case: Theory,
implementation and practical business operation. The enterprise involved in the
case is Telia (33000 employees) and more specifically a subsidiary Telia Handel
AB in Sweden (300 employees). The enterprise is the largest telecommunication
operator in Scandinavia and is a distinctly service management unit. It is our aim
to further develop theory connected to ABC action learning from this enterprise.
The actual case was initiated in the autumn 1996, the empirical work started in
The most important contribution is: The ” institutionalized norms” of ABC
show considerable tension and misfit between business reality and theory. Other
contributions were: 1. The founding of a new factor related to the activity
workforce that activities signify. 2. This study confirms earlier theory that it is a
complicated and time-consuming process to find correct activity-drivers. 3.
Traditional cost-allocation as the aim of an activity-based cost-system counteracts
an effective implementation of ABC due to different purposes.
Place, publisher, year, edition, pages
School of Business and Informatics, University College of Borås , 1998.
, No 1 Fall 1998
ABC, ABM, implementation, business reality, action learning, activity based costing
Economics and Business
IdentifiersURN: urn:nbn:se:hb:diva-4247Local ID: 2320/2124OAI: oai:DiVA.org:hb-4247DiVA: diva2:883628