The Activity Based Cost System ABC as a Strategic Tool: An Empirical Test
6 Pages Posted: 5 Jul 2001
Date Written: Undated
This article discusses the competitive advantages produced by the use of the Activity Based Cost System (ABC). This system allows managers to identify the specific costs of each one of the company activities, process and products. We present an empirical test that shows which strategic variable managers use when deciding to adopt the ABC System. The strategic variables tested in this study are: 1) the importance of a given cost system; 2) the level of competition of the industry; 3) the diversity of the product portfolio; 4) the speed of change in the industry.
Note: Downloadable document is in Portuguese.
JEL Classification: M40, M46, D24
Suggested Citation: Suggested Citation