Abstract
This dissertation explores Activity-Based Costing (ABC) in the New Zealand firm environment. A questionnaire is distributed to users and non-users of ABC, in order to determine the differences between these two groups in relation to the perceived advantages of ABC, organisational complexity, satisfaction with costing, and performance. The influence of top management support and whether a particular strategy is evident is also examined in relation to ABC users.
The results indicate that ABC users or those considering an ABC adoption have a more optimistic perception of advantages realised from ABC than non-users. No particular strategy is employed by ABC users and it also apparent that not all companies consider ABC to be tied to their competitive strategy. It is also found that not all elements of complexity necessarily precede an ABC adoption. A significant difference in satisfaction with costing is indicated between ABC users and non-users who are considering or have considered and rejected ABC. Similarly, a statistically significant difference is found between the performance of ABC users and non-users when it is indicated that the benefits of ABC outweighed the costs.
The results suggest that ABC is beneficial in the New Zealand firm environment. Exploring the extent of implementation and influences such as size and industry in future research will add to the understanding of ABC in the New Zealand firm environment.