You are on page 1of 430
Scien Atv. Bas0Coxing (A) Sytomin Tal tae Ens SEs) ABSTRACT During the past two decades the activity-based costing (ABC) system has received a great deal of attention as a cost management innovation that may provide more accurate product, costs than conventional cost allocation methods (Johnson 1987, Kaplan 1988, Cooper 1988a). Moreover, Favere-Marchesi (2001) stated that the ABC system is one of many such tools that have the potential to help Thai companies regain their competitive edge in an ever- growing world of contenders. The purpose of this study is to evaluate the implementaiion process of ABC systems in Thai organisations, particularly Thai State Enterprises (TSEs}, in order to identify the factors influencing this implementation so as to make suggestions for its improvement. As part of this a theoretical framework for ABC implementation in Thai State Enterprises is developed. This study has two objectives: the first is to obtain a picture of cost accounting systems, both traditional costing systems and ABC systems in Thai organisations, as the preliminary of this study. The second objective is to trace the ABC implementation in selected Thai State Enterprises where ABC systems have been implemented. This will examine the development of the ABC implementation in four Thai State Enterprises, namely, Thai Plywood Company Limited (TPC), Metropolitan Electricity Authority (MEA), Electricity Generating Authority of Thailand (EGAT) and TOT Corporation (Public) Company Limited (TOT). The results from this study, after in-depth investigation, reveal a large number of sub-factors influencing implementations; however, these sub-factors were compiled as nine main factors including, (1) Top management support, (2) Computer systems, (3) Education and training, (4) ABC team, (5) Objectives of ABC implementation, (6) ABC implementation process, (7) Benefits of ABC implementation, (8) Problems with ABC implementation, and (9) Level of progress of ABC implementation. Finally, this study develops a theoretical framework for ABC implementation and is the first to empirically apply an implementation stage model to Thai State Enterprises. T.Tupmongkol i Preface ‘Acti Based Costing (ABC) System in Thal State Enterprises (TSE) ACKNOWLEDGMENTS At the beginning of my journey, was naive. I didn't yotknow thatthe answers vanish as one continues to travel, ‘that there is only further complexity, that ere are still more interelationships and more questions. Kaplan, 1986 This thesis would not have been possible without the help and support of numerous individuals, 1 would firstly like to express my deepest gratitude to my supervisor, John J. Robinson. He truly provided a very helpful vision for my study and has given strong support continuously. During these years I have come to know John as a sympathetic and principle-centred person. His enthusiasm and integral view on research as well as his mission to produce “only high-quality work and not less”, has made a deep impression on me. I owe him lots of gratitude for having shown me this approach to research, It is impossible to express how much I have learned from him. Besides being an excellent supervisor, John has been as close as a relative and a good friend to me. I am really glad that | have come to know John J. Robinson. His encouragement and constructive comments have helped turn my ideas into reality throughout my doctoral study. His contribution will always be remembered. 1 express my sincere thanks to the Chief Executives of the Thai organisations that graciously allowed me the opportunity to collect data. 1 would also like to thank all T.Tupmongkol i Preface ‘Actty Based Costing (ABC) System in Tha State Enterprises (TSEs) the participants who took time to participate in interviews, particularly those from the four Thai State Enterprises, Thai Plywood Company Limited, Metropolitan Electricity Authority, and Electricity Generating Authority of Thailand, and TOT Corporation Public Company, for their diligent participation. Without their help the results of this research would not have been possible. * Lam deeply indebted to Mrs. Rutchaneeporn Pookayaporn Phukkamarn, the Vice- Chancellor of Sripatum University, Thailand, for providing me with a full scholarship for my doctoral study in England. © I wish to thank my beloved mother, Team-jun Tupmongkol for her eternal enthusiasm, devotion, and support provided through the best and worst times over the years of my candidature. [feel a deep sense of gratitude to my late father, Watthana Tupmongko! who passed away during the middle of my study. My debt to him can only be hinted at here by acknowledging that it was his idea in the first place that I return to university to study PhD in England, The happy memory of my father still provides a persistent inspiration for my journey in this life, “Please Dad, may your soul rest in peace”. © A very special note of thanks is extended to Miss Yuan (Wendy) Zhang, my fiancée and her family in China who have provided various forms of support in the last two years of my study. We met and fell in love at the Baltic Centre for Contemporary Art, England in 2004, T.Tupmongkot w Preface