Note on a New Zealand Replication of the Innes Et Al UK Activity Based Costing Survey

Posted: 19 May 2003

See all articles by William D. J. Cotton

William D. J. Cotton

SUNY at Geneseo - John Wiley Jones School of Business

Susan Jackman

University of Canterbiru

Richard A. Brown

University of Dundee - Department of Accountancy & Business Finance

Abstract

Activity-based costing (ABC) is a well-known technique for costing products and providing management information. This note reports the results of a faithful replication in New Zealand (NZ) of Innes et al's (1999) UK survey of ABC usage and a comparison of the results of the two surveys.

Adoption rates were found to be similar, with NZ companies showing slightly lower rates of implementation of ABC than UK companies. However, once they had implemented the method, NZ companies demonstrated greater commitment to ABC across more areas of the firm than UK companies. ABC systems in NZ tended to display less complexity than their UK counterparts. Strong correlations were found in the different uses of ABC by industry sector, but there were contrasting perceptions on the success and importance of some ABC applications.

This study provides an insight into ABC in NZ, data on trends in ABC experiences between two countries of widely differing size and geographic location, and suggestions for further research.

Keywords: activity-based costing, survey replication, management accounting

JEL Classification: M40, M46, M47

Suggested Citation

Cotton, William D. J. and Jackman, Susan and Brown, Richard A., Note on a New Zealand Replication of the Innes Et Al UK Activity Based Costing Survey. Available at SSRN: https://ssrn.com/abstract=407640

William D. J. Cotton (Contact Author)

SUNY at Geneseo - John Wiley Jones School of Business ( email )

1 College Circle
Geneseo, NY 14454
United States
585-245-5364 (Phone)
585-245-5467 (Fax)

Susan Jackman

University of Canterbiru ( email )

Private Bag 4800
Christchurch
+643 366-7001 (Phone)

Richard A. Brown

University of Dundee - Department of Accountancy & Business Finance ( email )

Dundee, Scotland DD1 4HN
United Kingdom
+44 1382 345879 (Phone)

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