Tapping full potential of ABC

Tapping full potential of ABC - PETER SEDK F2 TAPPING THE...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
PETER ŠEDÍK F2 TAPPING THE FULL POTENTIAL OF ABC Purpose of article The main objective of the article is to show why the ABC system is better than traditional cost-accounting system, how firms like Chrysler and Safety-Kleen implemented ABC system into their organizations. Why some firms fail to implement such system? How different is the approach of Chrysler and Safety-Kleen? What problems these firms faced during implementation. The end of article was devoted to main disadvantages of ABC in financial performance measurement and how mentioned companies coped with these problems. Findings ABC is might be better than traditional cost accounting systems because it helps firm to reveal which activities to keep and which to withdraw. It’s the helpful tool for improving marketing and product strategies and in finding out which activities bring highest added value for the company. But there might be some difficulties in implementing such system into organization. Only 10% of companies implementing ABC are successful. The rest struggles or give up. One of the greatest problems is employees and managers resistance to the change. But ABC might change the view on problems in the company and help to define company’s
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/10/2010 for the course BUSINESS A Business taught by Professor Stevens during the Spring '10 term at Anna University.

Page1 / 3

Tapping full potential of ABC - PETER SEDK F2 TAPPING THE...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online