By Rajendra Patil and Anil Kshatriya
Cost accounting is generally viewed as a manufacturing industry specific function. The service industry gives lesser emphasis on the adoption of mature cost management systems. Business managers across industries tend to assume that since the price is decided by the market, there is little need for investing time and resources in creating and maintaining elaborate costing systems.
Irrespective of whether there is a statutory requirement for statutory reporting of costs (as in the case of India, Pakistan and Bangladesh), very few organisations undertake the study of maturity of their prevailing cost management systems.
This study shows that Activity Based Costing (ABC) and Activity Based Management (ABM) are of greater significance for organisations who aspire to remain relevant and profitable in today’s hyper competitive business environment.Content reserved for CMA Australia members. Please go to HOME PAGE and log in to see the content. Your Username is your email address registered with CMA Australia. Your Password is you Member Id Number which starts from either MID/CID. This is printed on your certificate/renewal notice/invoice. You are required to input the full Id including MID/CID. User Name:_________________________ (your email address; e.g. email@example.com)Password: __________________________(your CID or MID number without spaces. e.g CID-003015) If you are having problems, members are requested to contact firstname.lastname@example.org to get log in details.