AN EXPLORATORY STUDY ON FACTORS AFFECTING ACTIVITY BASED COSTING (ABC) SYSTEM ADOPTION IN VIETNAMESE ENTERPRISES
Trần Tú Uyên
Cost management always plays very importance role in each enterprise, especially in the current economic and financial crisis. Activity-Based Costing (ABC) is a method of cost analysis, was introduced by Robin S. Cooper and Robert Kaplan, professors of Harvard Business School in 1988, and was described by Johson(1990) as one of the most important management accounting and innovation in the 20th century and has been applied in many countries. The objectives of this study are (1) investigate the current state of ABC adoption rates among Vietnamese enterprises, (2) find out factors influencing on ABC adoption in Vietnamese enterprises, (3) identify barriers for ABC adopting companies during the implementation process, (4) propose suggestions to help enterprises know about ABC and motivate them to adopt ABC system. Questionnaires were sent to Vietnam’s Top 500 businesses announced in 2012 by e-mail and mail with readily contacts on the internet. 323 questionnaires were sent successfully to companies and 73 responses (22.6%) are returned from 15/03/2013 to 05/04/2013. Quantitative method and Chi Square will be applied to analyze the questionnaire survey result to reach those objectives. The outcome of this study is believed to provide valuable information about actual state of ABC in Vietnam and solutions for dissemination of ABC in future.
Keywords: Activity Based Costing (ABC), Traditional Cost System (TCS), cost management, activity center.
Date of submission: 15 Apr 2014; Date of Revision: 2 Oct 2014