英语论文网

s where there is inadequate utility effort implementing the ABC model is likely to be more cumbersome. In addition to that, most of the emerging economies lack an appropriate way of approaching the implementation. Rationalizing facilities, identifying the opportunities and then conceptualizing proper solutions are a challenge to these economies due to lack of skilled manpower in the management level (RCG University, 1999).

Activity Based Costing makes a lot of sense to companies that produce a varied range of products or services and those that are suffering from inaccurate costing information. For these companies the issue of implementation is not such a big challenge, this is because the effort that is required to successfully implement ABC is worth their resources. The emerging economies mostly lack large companies that offer multiple products, therefore the cost of implementing the ABC model is really a challenge to a manager of that company.

Businesses are competing in an ever-changing competitive globe. Therefore companies are supposed to fully implement and apply the ABC system in order to become more productive, efficient and profitable and therefore earn a competitive advantage over other companies. This means that there is need for careful analysis done by managers before shifting into new methods and techniques of decision making. Therefore, an additional investment should be put aside for proper analysis of the different types of cost techniques (Klener and No, 1997). These additional costs are a challenge to the managers of firms in an emerging economy due to limited number of resources.

There are many challenges that a manager can face when trying to implement the ABC model in the emerging economies. First there are challenges in trying to design and build a model. This challenge is more rampant in the developing economies due to lack of adequate resources available for a firm to be in a position of implementing the model with less cost burden. Updating and maintaining the model requires an additional investment or cost to the small companies. Gathering and integrating data requires a higher level of skilled personnel that is at a lower level as compared to the stable economies (Galbraith et al, 1998). Finally, reporting and disseminating the integrated data, analyzing it and coming out with relevant decisions son cost management is also another challenge to most firms.

ABC model has been implemented over time by many companies that experience rising level of costs. Their main aim is to reduce costs and increase the level of productivity. However, due to some reasons some companies have reported successful implementation while others have reported problems with implementation of the systems or have rejected them. This difference occurs due to a number of varied reasons (Klener and No, 1997).

Some companies that report positive feedback on the implementation of the ABC model state that some of their existing tools allow for a much quicker development of such cost management models. This ability comes from the quality of modern tools and the learning curve. This differs greatly through different industries. For those firms that have old-fashioned technology are seen to face much rejection towards implementation of the ABC model (Liu and Pan, 2007). An example of the modern technology that most up-to date firms use when implementing new cost management methods i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。