Why did ABC fail at the Bank of China? Unless top management lends its support, employees understand the purpose of using ABC, models are tested, and ... article from: Management Accounting Quarterly

This digital document is an article from Management Accounting Quarterly, published by Institute of Management Accountants on March 22, 2008. The length of the article is 4297 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.

From the author: Few authors have explored the implementation of activity-based costing (ABC) in East Asian companies. This study investigates factors that led to the failure of an ABC implementation at a major Chinese financial institution--the Bank of China. Interviews with 18 employees at one branch revealed six factors that blocked the implementation: the lack of clear business purpose, a lack of education about ABC, poor model design, a lack of participants, individual and organizational resistance to change, and the fact that few outsourcers were available. The study represents a real example of why ABC implementation might fail in an organization.

Citation Details
Title: Why did ABC fail at the Bank of China? Unless top management lends its support, employees understand the purpose of using ABC, models are tested, and costs/benefits are determined, ABC implementations could fail.
Author: Abed Al-Nasser Abdallah
Publication:Management Accounting Quarterly (Magazine/Journal)
Date: March 22, 2008
Publisher: Institute of Management Accountants
Volume: 9 Issue: 3 Page: 7

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