TITLE:
Exploring the Relationship between Industry Characteristics and the Adoption of an Innovative Cost Accounting Method: A Literature Review on the Greek Context
AUTHORS:
Anastasios Chatzis, Georgios L. Thanasas, Agathi Koulidou
KEYWORDS:
Activity Based Costing, Construction, Education, Public Sector, Hospitality, Hotels, Management Accounting, Medical Sector
JOURNAL NAME:
Theoretical Economics Letters,
Vol.13 No.6,
December
27,
2023
ABSTRACT: In this research, we assess the applicability of Activity-Based Costing
(ABC) methodology across various industries in a developing country context.
Through a comprehensive review of articles focusing on ABC implementation
within specific sectors in Greece, we employed a multiplication rule in keyword
research to identify key patterns. Our findings highlight that industries such
as construction, medical, and pharmaceuticals exhibit a higher suitability for
ABC, primarily due to the presence of costly equipment in their total assets.
ABC proves instrumental in accurately allocating costs, particularly in
managing the expenses associated with valuable equipment to prevent both
overvaluation and undervaluation. Furthermore, sectors like hotels and
education demonstrate significant potential for ABC system implementation.
However, in smaller companies where employees engage in diverse tasks, a
cautious approach to ABC implementation is crucial, necessitating the use of
appropriate information systems.