A case study of implementing activity-based costing

What is it about?

This intensive case study examines the implementation of ABC in a Portuguese telecommunications company. Managers dealing with national and European regulators welcomed and used it whilst it was resisted by line managers and engineers as it further diluted their influence in the organisation and ABC had significant technical problems.

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Why is it important?

The article points out how ABC can have technical deficiencies and hit implementation problems. Whilst not denying the importance of change management the case suggests that this will not invariably overcome implementation problems, especially when power and security of employment are perceived concerns.