Cost Management Practices in India: An Empirical Study

ASCI Journal of Management, Vol. 33, Nos. 1-2, pp. 1-13, 2004

Posted: 5 Aug 2005

See all articles by Manoj Anand

Manoj Anand

Management Development Institute

B. S. Sahay

Management Development Institute - Supply Chain Management Area

Subhashish Saha

Securities Exchange Board of India

Abstract

The present study of 53 CFOs of corporate India captures the development in the cost management practices such as accounting for overheads, applications of budgetary control and standard costing. It addition to traditional cost management techniques it also deals with applications of contemporary management tools such as activity-based costing. The hypotheses in general deal with the difference in the practices across sectors, stages, and level of adoption of contemporary cost management techniques.

The firms are successful in capturing accurate cost and profit information from their ABC cost systems for value chain and supply chain analysis. The results suggest that the firms have better insight for benchmarking and budgeting with ABC cost system yet the consistency in their priority of budget goals is lacking unlike the firms who are using traditional costing systems. However both the ABC and traditional cost system users have clarity of reasons for effective implementations of planning and budgeting process in their organizations. There is no significant difference in the application of standard costing between the ABC-users and the traditional costing system users. This implies that the use of activity-based cost systems and standard costing is not mutually exclusive. There is a widespread use of sales variances and material variances vis-a-vis labor and overheads cost variances.

Keywords: Cost Management, Standard Costing, Activity-Based Costing, Overheads

JEL Classification: M4, M40

Suggested Citation

Anand, Manoj and Sahay, B. S. and Saha, Subhashish, Cost Management Practices in India: An Empirical Study. ASCI Journal of Management, Vol. 33, Nos. 1-2, pp. 1-13, 2004, Available at SSRN: https://ssrn.com/abstract=629262

Manoj Anand (Contact Author)

Management Development Institute ( email )

Gurugram, Haryana 122001
India

B. S. Sahay

Management Development Institute - Supply Chain Management Area ( email )

P.O. Box 60, Sukhrali
Mehrauli Gurgaon Road
Gurgaon, 122001
India

Subhashish Saha

Securities Exchange Board of India ( email )

Mumbai
India

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
7,706
PlumX Metrics