SUGGEST SOLUTIONS FOR DIFFUSION AND IMPLEMENTATION OF ACTIVITY-BASED COSTING IN VIETNAM
Journal Title: Asian Economic and Financial Review - Year 2014, Vol 4, Issue 2
Abstract
Activity-Based Costing (ABC) was developed by Robert S. Kaplan in the mid-1980s and up to now the academics, researchers as well as accounting practitioners have perceived it as the normative appropriate cost system. It has been considered as a method to overcome the shortcomings of the traditional costing. However, the application the new method as ABC is a challenge for Vietnamese companies because most of them have used traditional costing for calculating product cost. Changing from traditional costing system to ABC system will face many difficulties. In the fierce competitive business environment, along with the growth of Vietnamese companies – it means that the production of product diversity, machinery and equipment invested more and more modernly and automatically, leads indirect costs increasing and major proportion in total costs. These characteristics are suitable for the application of ABC method to calculate product cost and provide information for management. In addition, increasing of pressure from consumers and competitors force Vietnamese businesses to find a more modern approach to help them achieve advantage competition and increase profitability. Thus, application of ABC method is need for Vietnamese companies. This paper attempts to find obstacles to ABC application and suggests solutions for ABC diffusion and implementation in Vietnam.
Authors and Affiliations
Tandung Huynh| School of Business Administration, Hunan University, China; Faculty of Accounting and Auditing in Industrial University of Ho Chi Minh City, Vietnam, Guangming Gong| School of Business Administration, Hunan University, China, Huyhanh Huynh| Faculty of Accounting and Auditing in Industrial University of Ho Chi Minh City, Vietnam
Keywords
Related Articles
- EP ID EP2001
- DOI -
- Views 486
- Downloads 29
IMPACT OF FINANCIAL LIBERALIZATION ON ECONOMIC GROWTH: A CASE STUDY OF PAKISTAN
We have tried to explore the link between financial liberalization index (FLI) and economic growth in Pakistan by using annual data for 1971- 2007. The Phillips Perron unit root test is utilized to verify the level of i...
Poverty and Sustainable Socio-Economic Development in Africa: The Nigerian Experience
There has been a growing incidence of poverty in sub-Saharan Africa over the last two decades. Poverty is a multidimensional social phenomenon that can be analytically divided into two main perspectives: human poverty wh...
PERCEIVED LOAN RISK AND EX POST DEFAULT OUTCOME: ARE THE BANKS’ LOAN SCREENING CRITERIA EFFICIENT?
Prospective borrowers from commercial banks are usually made to pass through stringent lending procedure. The screening procedure is intended to forestall likely default intents and reduce credit risks. Banks, through th...
SHAPING ORGANIZATIONAL LEARNING CAPABILITY THROUGH ORGANIZATIONAL INTELLIGENCE: AN EMPIRICAL EVIDENCE FROM JORDANIAN FIRMS
This study aims to investigate the role of Organizational Intelligence (OI) in Organizational Learning Capability (OLC) from the viewpoint of the managers in the telecommunications companies in Jordan. The data is collec...
CAN EMERGING MARKET PROTECTIONISM BE BENEFICIAL?
This paper employs a sequential trade competition model to analyze differential trade effects on an emerging market. We find that free trade is not able to alter the ex post dominance of the foreign incumbents and, conve...