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For the ABC technique to have an impact on a companyaa??a?￠s cost management there is need of allocating time for it to be successfully implemented. Most companies allow a long duration of time for acceptance and understanding because of the associated their long learning curves. This may lead to a higher accumulation of costs as a result of the pooled up costs associated with the implementation of the cost management technique. It is also understood that changes is not something that something that people readily accept. A company will be willing to allow its objectives to grow as their understanding of the cost management technique that had been implemented in that particular organization (Klener and No, 1997). This obviously differs from one company to another thus bringing about a difference in their implementation styles.

Implementation of the ABC method into a company system requires that the company to which this system is to be implemented to have the required resources and capacity to be able to accommodate the system. Companies with adequate amount of resources are at a higher probability of accommodating the changes brought about by the new implemented cost management model. This is because the adequate resources can support the additional costs that are required for successful implementation of the model. On the other hand, companies with lower amount of resources or capital base will take a long duration of time to implement the system or they might report failure in the implementation process. This is because; the new system will seem to be an additional cost towards the company which may not be accommodated by many small firms (Liu and Pan, 2007).

For the success of a company in implementing the ABC model, there must be the top management perfect involvement. For a company that has top management support provides an opportunity for the success of the implementation of the ABC model. The corporate culture of the top-to-down management in the instigation of the adoption of the management innovations will determine the success of the effective cost management. For example due to the hierarchical nature of the organization and taking into consideration of high proportion of dedicated professionals determines the success of the implementation of the ABC system within the organization (Liu and Pan, 2007).

Firms that report success in the implementation of the ABC model means that the model is applicable in their firms. On the other hand, for those that report failure show that the model is not applicable for their cost management systems. For example, firms that have multiple service and product provision are at a higher probability of accepting this model than firms with limited or one line of service and product provision (Dunn, 2004, p.4). Therefore, implementation of the ABC model also goes hand in hand with the applicability of the model in the company.

In general, activity based costing method is beneficial to firms that want to increase their profitability level above the normal level and for those that want to manage the product associated costs more effectively. From the essay we have seen how this model has been widely used and accepted by firms in different countries and how it has assisted in proper cost management. However, for the firm to successfully use the model there is need for 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。