Business Commons^™

Implementing Activity-Based Costing And Its Implications For A Service Firm In The Tme Share Exchange Industry, Sakthi Mahenthiran, Bruce D. Marshall

Scholarship and Professional Work - Business

This study reports on how an activity-based cost accounting (ABC) system was implemented in a service firm in the timeshare exchange industry. In addition, the study highlights the similarities of implementing ABC in a service firm and a manufacturing firm. An important contribution of this field study is to illustrate the separation of labor activities into those that are productive versus those that are not. Further, the study shows the importance of separately allocating the non-productive activities, which are traceable to the primary service lines from those that are not traceable to them. This is analogous to separating the product …