Wingren, Tom (2005). Essays on Activity–Based Costing
Mass-tailorization, Implementation and New applications. Acta Wasaensia No.
136, 240 p.
This doctoral dissertation examines the theory of activity-based
costing/management (ABC/M) concept. The research has four related aims. The
primary aim is to develop the existing theory by introducing a new
mass-tailored ABC concept[1].
The next two aims are to contribute to the implementation process of ABC/M, as
well as to the learning process, during the implementation of ABC/M. The last
aim is to present a conceptual model how the relationship between strategic
priorities, key success factors, performance measures and management accounting
can be improved with the developed mass-tailored ABC system.
The success of the mass-tailored ABC is examined by
comparing it to the traditional ABC method (essay #1), as well as to similar
ABC implementation processes in case companies with different level of prior
ABC experience (essay #1 and essay #2). One feature of the mass-tailored ABC is
its potential to offer support in locating value creators in the company’s
value chain; this dimension is explored in this research (essay #3). Another
framework to link strategic priorities and operational effectiveness by combining
Balanced Scorecard (BSC) and Intellectual Capital (IC) with an ABC system is
also presented (essay #4). All essays include empirical evidences from the
selected case companies.
The empirical part consists of two
groups of companies; one group has prior experience of ABC, while the other has
no previous experience of this costing method. The group with earlier
experience of ABC reported mass-tailored ABC to be better than the traditional
ABC in many important respects. The empirical evidence exemplifies the way that
the mass-tailored ABC can reach beyond the traditional role of ABC in
identifying cost drivers, and can actually help to highlight and disaggregate
an organization’s value creators and the latent drivers behind those. The
differences in the companies’ implementation processes also extend the
empirical data, especially in the context of learning process and the
companies’ prior experience of ABC/M.
Tom Wingren, University of Vaasa,
Faculty of Business Studies, Department of Accounting and Finance, P.O.Box 700,
FIN-65101 Vaasa, Finland , e-mail: twi@uwasa.fi or tom.wingren@fi.abb.com
Key words:
activity-based costing, activity-based management, constructive approach,
management accounting, strategic management accounting, implementation, learning.
[1] It is here referred to as the ABC2000. ABC2000 is a mass-tailored ABC/M system developed by this researcher in collaboration with members of FIABB ABC work group and FIABB ABC team for ABB Ltd companies in Finland.