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with costs. In addition to that, the ABC model helps to make the employees to understand the various types of costs involved. It also the helps them analyze the cost, value added and non-value added activities and thus enabling them to realize the benefits accrued from the products and services produced (Value Based Management.net, 2010).

In cost management and decision making, Activity Based Costing has also an extension known as the Activity Based Management that fully touches all aspects of management costing. This allows the management to examine the non-value-added activities and hence make rational decisions on them. This technique in ABC model relies on the ABC system in specifying where the non-value-added activities exist and hence provide the value and amount of monetary benefits that are associated with their elimination. The other side of the valueaa??'added costing is fully dealt with in the full model Activity Based (ABC) Model (Dunn, 2004, p.2).

Activity Based Costing has been adopted by many countries in different sectors around the world. Different sectors in the world economies have been modified and hence their cost management techniques simplified by the use of this model. For example, sectors of the economy such as the manufacturing industry, banking industry, retail industry, and even the government have a perfectly implemented ABC model in their management costing.

Japan provides a much more experimental case study for our discussion. There was a great impact of the innovations of the cost accounting technique, basically ABC, on the technology trigger (an external impetus that stimulates innovation) between the years 1984-1997. This was particularly applied on both the electronic and automotive sector. In the past it was believed that, the causes of low wage labor and undervalued currencies were the innovative management practices, just-in-time material flow of systems, statistical process control and continuous improvement. There was also the issue of unfair competition and adoption of inappropriate management practices from other companies (Accounting Coach, 2004).

As a result of this, there was the emergence of new costing approaches in several manufacturing industries including the automotive industry. This was after the realization that the cost accounting systems used at that time were associated with negative operational and strategic consequences. For example, the Tektronix Company started allocating manufactured overheads to the specific products based on the direct labor. This encouraged the engineers to design products that required less labor to manufacture as compared to the past years. This method provided the engineers with a much cheaper way of making decisions (Turney, 2008, p.3). The elimination of the behavioral distortion that was inherent in the used cost accounting system helped the Tektronix Company to compete.

Another sector where the ABC method was implemented and used is the business sector and offering of financial services. With most technologies, the development of the first generation methods encouraged the development of the ABC market. A large number of consulting firms started building up the ABC practices in the late 1980aa??a?￠s and early 1990aa??a?￠s with an introduction of the first commercially available ABC software. By the invention of this method, there was an increase in the level of profitability ratio by th本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。