Factors Affecting Implementation of Activity Based Costing in Selected Manufacturing Units in India

International Journal of Risk and Contingency Management
Volume 8 • Issue 3 • July-September 2019
Factors Affecting Implementation of

Activity Based Costing in Selected
Manufacturing Units in India
Amit Kumar Arora, KIET, Group of Institutions, Ghaziabad and Research Scholar - IGNOU, New
Delhi, India
M.S.S. Raju, IGNOU, New Delhi, India
ABSTRACT
The present article is an attempt to analyze the various factors affecting the adoption of
an activity-based costing (ABC) system in selected manufacturing units in India. The
following seven factors are considered: firm size, diversity of the product, percentage
of overhead cost in total cost, listing of the company, cost audit compulsion, separate
cost accounting department and the method of accounting. Logistic regression and
a Chi Square test are applied to these factors and the use of an ABC system. On
the basis of 72 sample units, the study found the size of the firm, percentage of
overhead cost in total cost, cost audit compulsion and the method of accounting
are statistically significant for the adoption of ABC system. While factors such as
diversity of the product, separate cost accounting department and the listing of the
company are found to not be statistically significant for the adoption of ABC system.
The study has provided additional insights into areas relating to the factors affecting
the implementation of ABC systems.
Keywords
Activity Based Costing, Implementation of ABC, Manufacturing Sector, Product Diversification
INTRODUCTION
Today in the cut thought competition management needs to have more accurate and
reliable cost information to take appropriate decisions. Managers and accountants have
become dissatisfied with conventional costing systems and have expressed concerns
about their suitability in the modern manufacturing environment. Conventional cost
DOI: 10.4018/IJRCM.2019070102

Copyright © 2019, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.

18
systems have been severely criticized by experts since the late 1980s. One of the major
drawbacks of these systems is that they employ inappropriate measures for assigning
indirect or overhead costs, leading to imprecise product costs. Critics have therefore
argued for better cost systems that reflect cost information more accurately. ABC
system was developed to overcome the deficiencies found in conventional cost systems.
Activity based costing (ABC) assigns manufacturing overhead costs to products in a
more logical manner than the traditional approach of simply allocating costs on the
basis of machine hours.
The initial purpose of the ABC system is to provide a fair and accurate cost
allocation and therefore product, or in this case services, profitability evaluation also.
Accordingly, the ABC system focuses its attention on indirect costs. The aim is to define
the most appropriate way for indirect costs allocation to cost objects. Activity-based
costing determines every activity associated with producing an item and allocates a
cost to the activity. Activity based costing first assigns costs to the activities that are
the real cause of the overhead. It then assigns the cost of those activities only to the
products that are actually demanding the activities. In ABC system maximum burden of
the overhead cost is to be beard by the department who has used most of the services.
The majority of research on ABC was done in developed countries and very minute
research has been done in developing country, especially in Asian context. In reference
to Activity Based Costing system there are very few studies which are conducted in
India. Several studies are conduct in various countries to determine the factors affecting
the use of ABC system. Some of the studies found positive association of size of the
firm, product diversity and percentage of overhead cost with the use of ABC system.
Few studies found no significant relationship among these factors and use of ABC
system. While some studies found negative relation among the above factors and use
of ABC system. The present study is an attempt to know what kind of relation exists
for the Indian companies for the above said factors. The study has used four additional
factors which are not used in prior studies i.e., system listing of the company, Cost
audit compulsion, Separate cost accounting department and Method of accounting
which can affect the adoption of ABC system.
OBJECTIVES OF THE STUDY
Previous studies attempted to know the factors affecting the implementation of ABC
system. Most of the studies considered the firm size or product diversification as the
main factors for the implementation of the ABC system. But in the present study in
addition to the firm size and product diversity we have considered are Listing of the
company, cost Audit compulsion, Separate Cost Department and Accounting Method.
As per the past studies there is a mix result of the Product diversity and the size of
organization with the use of ABC system. Some studies show that there is significant
positive relation among these. On the other hand some studies measure no significant
relation between organization size, Product diversity and use of ABC. But no study
is found which determine the relationship between the ABC uses and the factors such
19
as: Listing of the company, cost Audit compulsion, Separate Cost Department and
Accounting Method. The objective of the present study is to determine the relationship
among the size of the organization, Product diversity, listing of the company, cost
Audit compulsion, Separate Cost Department and Accounting Method and the ABC
uses in the selected manufacturing units.
DEVELOPMENT OF THE HYPOTHESIS
On the basis of the objective of the study the following hypotheses are developed:
1. Firm Size and Use of ABC System: As the literature the firm size and the use
of ABC system are related to each other. The size of the firm generally measured
in term of number of employees in the organizations or on the basis of turnover.
So in the present study we have considered the number of the employees, annual
turnover and investment in plant and machinery as in India the size of the firm
is determined on the basis of the investment in plant and machinery. Companies
having investment of five crores to ten crores in plant and machinery are considered
as medium scale industries. And the Companies having investment of ten crores
or more in plant and machinery are considered as large-scale industries. So, we
have attempted through this hypothesis to know the relation between firm’s size
of the company and the use of ABC system:
H0a: There is no relationship between the size of the organization and the ABC uses.
H1a: There is significant relationship between the size of the organization and
the ABC uses.
2. Product Diversity and Use of ABC System: Previous literature says that product
diversity (i.e. number of products) can also affects the adoption of ABC system,
though there is a mix result of this as some studies found positive relation while
some studies found no significant relation between the above factors. So, we have
attempted through this hypothesis to know the relation between product diversity
of the company and the use of ABC system:
H0b: There is no relationship between the product diversification and the ABC uses.
H1b: There is significant relationship between the product diversification and the ABC uses.
3. Overhead Percentage in Total Cost and Use of ABC System: As the ABC system
is used for the better apportionment of overheads to the different departments.
So, the companies which are having large amount of overhead in the total cost
are expected to use ABC system more as compare to those which are having low
percentage of the overheads in total cost. So we have attempted through this
hypothesis to know the relation between overhead percentage in total cost of the
company and the use of ABC system:
H0c: There is no relationship between the overhead percentage in total cost and
the ABC uses.
H 1c: There is significant relationship between the overhead percentage in total
cost and the ABC uses.
20
4. Listing of the Company and Use of ABC System: A listed company is

one who has offered its shares for trading in a stock exchange. You can buy
or sell shares openly. An unlisted company is that which has not offered
shares for trading. Generally, we found that the large companies are listed
as compare to small companies. So, the chances of adoption of ABC system
implied to be high for the listed companies. So we have attempted through
this hypothesis to know the relation between listing of the company and the
use of ABC system:
H0d There is no relationship between the Listing of the Company and the ABC uses.
H 1d: There is significant relationship between the Listing of the Company and
the ABC uses.
5. Cost Audit Compulsion and Use of ABC System: As per the Companies Act,
2013 every company engaged in the production of goods or providing services,
specified in Table A and B having a turnover of 35 crores or more shall include
cost audit. In cost audit record of cost is to be maintained which is very helpful for
the implementation of ABC system in any organization. So, we have attempted to
analyze through this hypothesis to know the relation between cost audit compulsion
and the use of ABC system:
H 0e: There is no relationship between the cost audit compulsion and the ABC uses.
H 1e: There is significant relationship between the cost audit compulsion and the
ABC uses.
6. Separate Cost Department and Use of ABC System: As some companies are
having separate cost department to maintain the records of cost with an objective
of controlling and reducing the cost. So, an organization having separate cost
department are having more chances of implementation the ABC system. So, we
have attempted through this hypothesis to know the relation between separate cost
department and the use of ABC system:
H0f: There is no relationship between the separate cost department and the ABC uses.
H 1f: There is significant relationship between the cost audit compulsion and the
ABC uses.
7. Accounting Method and Use of ABC System: While maintaining accounting
records a company can keep manually records, can record through Tally or can
use SAP/ERP/Oracle. As we need to have detailed information to implement
the ABC system in any organization. So, it implies that companies using the
SAP/ERP/Oracle system for maintaining the records can generate the required
information easily as compare to those who are manually doing or maintain the
records through tally. So, the companies using SAP/ERP/Oracle are having more
chances to use ABC system. So, we have attempted through this hypothesis to
know the relation between accounting method used by the company and the use
of ABC system:
H0g: There is no relationship between the Accounting Methods and the ABC uses.
H1g: There is significant relationship between the Accounting Methods and the
ABC uses.
21
RESEARCH METHODOLOGY
Data Collection Procedure

The questionnaire has been developed to collect the data. The study is based on Primary
data collected through direct interview and the responses received through the mail.
To check the reliability of the questionnaire Cronbach’s Alpha values is determined
through SPSS and the value received was 0.799 which shows that the questionnaire
is reliable. The value of Cronbach’s Alpha above 0.7 is considered as good.
Sample
The study targeted only medium and large-scale companies having investment in plant
and machinery more than five crore rupees as the possibility of implementation of the
ABC system is high in these organizations. As in India the companies having investment
in plant and machinery five crores to ten crores are considered medium scale companies
and companies having more than ten crores investment in plant and machinery are
considered as large-scale companies. We have targeted 140 manufacturing units in
Delhi/NCR region on the basis of convenience sampling. Out of targeted 140 units
data is received from 76 companies (response rate 54% approx..) out of these data
received 4 responses are found not suitable for the study, hence total 72 company’s
data are considered for the study.
Method
To analyze the data Logistic regression is used through SPSS software is used to
determine the impact of size of the organization, product diversification, overhead
cost in total cost on the use of ABC system in the selected manufacturing units. Chi
square test is used to know the association between: Firm size and Use of ABC System,
Product Diversity and Use of ABC System, Overhead Percentage in Total Cost and
Use of ABC System, Listing of the Company and Use of ABC System, Cost Audit
Compulsion and Use of ABC System, Separate Cost Department and Use of ABC
System, Accounting Method and Use of ABC System.
LITERATURE SURVEY
A number of studies also conducted to know the relationship between use of ABC
system and company’s characteristics such as size of the firm, product diversity and
level of overhead. There is a mix result for the above factors some studies found
significant relationship between the use of ABC system and some of company’s
characteristics while some studies found no relation or negative relation between the
use of ABC system and some of company’s characteristics. (Arora and Raju, 2017)
investigated 23 medium and large-scale manufacturing Indian units and found that
the firm size has a significant impact on the implementation of ABC system. Logistic
regression is used to analyze the relationship between size and adoption of ABC
system. The study used log values of the number of employees to measure the size of
22
the firm. (Ahmadzadeh, 2011) examine 57 companies to know the importance of five
factors i.e. industry type, size of the organization, cost structure, importance of cost
information and product/services diversity on the implementation of ABC system.
The study found by using logistic regression that there is a positive relation among
cost structure, importance of cost information with the ABC usage. The study also
concluded negative association among the type of industry, organization size and uses
of ABC system. (Elhamma, 2012) studied 62 firms to know the relationship between
firm size, ABC and performance. Researcher used logistic regression to determine
the relation between firm size and ABC uses and found that the size influence the
implementation of ABC system. (Gosselin, 1997) while studying adoption of Activity
management approaches and strategy found negative relationship between size and
the adoption of ABC. For measuring the size of the firm researcher used log of the
number of employees as well as total sales. (Bjornenak, 1997) studied 75 manufacturing
companies to know the importance of cost structure, competition, product diversity
and firm size for adoption of ABC. He found only cost structure significant for the
adoption of ABC. Where-as the size of the organization is not the reason to adopt ABC
system in the organizations. He considered number of employees for measuring the
size of the organization. (Brierley, 2008) Studied four factors influencing the level of
consideration of ABC i.e., level of competition, product customization, manufacturing
overheads costs and operating unit size. By using ordinal regression analysis for 200
firms he found that out of the above four factors only the unit size is significant to the
adoption of ABC. The size of operating unit was measured by two ways i.e. annual
sales revenue and number of employees in the operating units. (Brown, Booth and
Giacobbe, 2008) studied the impact of technological and organizational influence on
the adoption of ABC in Australia. Authors considered four organizational factors i.e.,
top management support, internal champion supports, organizational size and use of
consultants are used and three technological factors i.e. level of overheads, product
complexity and diversity and relative advantage are used to determine the impact over
the use of ABC by using cross sectional study on 160 firms in Australia. Logistic
regression model is used to determine the result and the study found three factors
i.e. top management support, internal champion support and organization size leads
to implement ABC in the organizations. (John, 2014) studied the effects of firm size
on ABC implementation in Nigerian Manufacturing sector. In this study the author
collected data from 24 manufacturing firms listed in Nigerian stock exchange with the
motive to determine the impact of firm size with the use of ABC. By using logistic
regression analysis he found the significant relationship between firm size and use
of ABC. (Rbaba’h, 2013) examine the relationship between company characteristics
i.e. industry type, number of employees, number of products, level of overheads and
ABC implementation. He examined Jordanian manufacturing companies and used
logistic regression and found no significant relationship among ABC implementation
and above said variables. The study considered numbers of employees as the size of
the companies.
23
Factors such as product diversity (increase in the number of products), increase in

competition and increased in overheads are also found very important to implement
ABC system (Salawu and Ayoola, 2012, Cagwin and Bouwman (2002). On the other
hand, few studies found no significant relation such as (Arora and Raju, 2017, Rbaba’h,
2013, Brierley, 2008, and David et al., 2004).
DATA ANALYSIS AND FINDINGS
The results of the analysis are presented in this section with the discussion and findings.
Implementation Rate of ABC System

Out of the 72 Indian medium and large-scale selected manufacturing units only 28
units have adopted/implemented ABC system, which is ~ 39 percent.
Association Among Firm Size, Diversity of the Product and Percentage

of Overhead Cost in Total Cost With ABC Implementation
Logistic regression is used to determine the relation among Firm Size, Diversity of
the product and percentage of Overhead cost in total cost with ABC Implementation.
Tables 1-4 show the analysis of the same.
Obnibus model has a chi-square value of 65.530 with significant value of .000
which is less than .05 which states that the model is significant (see Table 1).
Nagelkerke R Square is similar to R Square we use in OLS. This explains
that how much variance in the dependent variable is explained by the predictive
variables. In the present study approx 80% variation is explained by the predictive
variables (see Table 2).
The classification table shows how good the model to predict the actual outcome
is. In the present study the model is able to predict the 88.9%. This indicates that the
Table 1. Omnibus tests of model coefficients
Chi-Square df Sig.
Step 65.530 5 .000
Step 1 Block 65.530 5 .000
Model 65.530 5 .000
Source: Author’s compilation through primary data
Table 2. Model summary
Step -2 Log Likelihood Cox and Snell R Square Nagelkerke R Square

1 32.274 a
.598 .804
a. Estimation terminated at iteration number 9 because parameter estimates changed by less than .001.
24
present model prediction is correct around 89%. Generally model having prediction
power more than 70% is considered as a good model (see Table 3).
Table 4 is the most important table where variables are in the equation. As we can
see that number of employees and percentage of overheads cost in total cost are found
to be statistically significant as the significance value is .008 and .004 respectively
which is less than .05. So, we can say that there is a significant relationship between
the firm’s size (number of employees) and the implementation of ABC system. The
finding is similar to the studies conducted by (Arora and Raju, 2017, Rbaba’h, 2013,
Elhamma, 2012, Brierley, 2008,) as well as between the overheads cost in total cost
and the implementation of ABC system. Thus, from the above we can reject the null
hypothesis one and three. The diversification of product is found to be not significant
as the significance value is .445 which is more than .05 so we can say that the second
null hypothesis is accepted i.e. there is no significant relationship between the number
of products and implementation of ABC system. The above finding is similar to the
studies conducted by (Arora and Raju, 2017, Rbaba’h, 2013, Brierley, 2008, and David
et al., 2004). The other parameters of measuring the size of the firm instead of number
of firm’s i.e. Average annual turnover and the investment in plant and machinery are
found to be non-significant (see Table 4).
Table 3. Classification table a
Predicted
Observed ABC_Uses
Percentage Correct
No Yes
No 39 3 92.9
ABC_Uses
Step 1 Yes 5 25 83.3
Overall Percentage 88.9
a. The cut value is .500
Table 4. Variables in the equation
B S.E. Wald df Sig. Exp(B)

No. of Employees .009 .003 7.063 1 .008 1.009
Av. Annual Turnover .001 .002 .289 1 .591 1.001
No of Products -.017 .089 .038 1 .445 .983
Step 1a
Plant & Machinery (Cr.) .001 .006 .010 1 .522 1.001
Percentage of Overhead 2.149 .748 8.255 1 .004 8.580
Constant -8.679 2.491 12.135 1 .000 .000
a. Variable(s) entered on step 1: No_Employees, AAT, No_Products, PM_Crores, Percentage_Overhead.
25
Association Between Factors i.e., Listing of the Company,

Cost Audit Compulsion, Separate Cost Accounting Department
and Method of Accounting With ABC Implementation
Chi Square test is used to determine the association among Listing of the company,
Cost audit compulsion, Separate cost accounting department and Method of accounting
with ABC implementation. Tables 5-8 show the analysis of the same.
As per Table 5 we can analyze that there is no association between listing of
the company and implementation of ABC system. The significance value is .256
which is more than .05 which implies that our fourth hypothesis is accepted i.e.
there is no significant relation between listing of the company and use of ABC
system (see Table 5).
As per Table 6 we can analyze that there is a significant association between listing
Cost Audit Compulsion and implementation of ABC system. The significance value
is .000 which is less than .05 which implies that our Fifth hypothesis is rejected i.e.
there is a significant relation between listing of the company and use of ABC system
(see Table 6).
Table 5. Chi-square test- listing of the company and ABC implementation
Asymp. Sig. Exact Sig. Exact Sig.

Value df
(2-Sided) (2-Sided) (1-Sided)
Pearson Chi-Square .816a 1 .366
Continuity Correction .430 1 .512
Likelihood Ratio .815 1 .367
Fisher’s Exact Test .460 .256
Linear-by-Linear
.804 1 .370
Association
N of Valid Cases 69
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 12.17.
Table 6. Chi-square test- cost audit compulsion and ABC implementation

Value df
Pearson Chi-Square 13.053a 1 .000
Continuity Correction 11.318 1 .001
Likelihood Ratio 13.358 1 .000
Linear-by-Linear Association 12.864 1 .000
N of Valid Cases 69
a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 11.74. Source: Author’s compilation through primary data
26
As per Table 7 we can analyze that there is no association between Separate

Cost Department and implementation of ABC system. The significance value is
.146 which is more than .05 which implies that our Sixth hypothesis is accepted
i.e. there is no significant relation between Separate Cost Department and use of
ABC system (see Table 7).
As per Table 8 we can analyze that there is a significant association between
Accounting Method and implementation of ABC system. The significance value is
.002 which is less than .05 which implies that our Seventh hypothesis is rejected
i.e. there is a significant relation between listing of the company and use of ABC
system (see Table 8).
CONCLUSION
The study found 39 percent of sample unit are using ABC system. This is evidence
that Indian manufacturing firms are moving towards the adoption of new management
accounting technique to get the benefited associated with the adoption of ABC
Table 7. Chi-square test- separate cost department and ABC implementation

Value df
Linear-by-Linear
1.686 1 .194
Association
N of Valid Cases 69
Table 8. Chi-square test- accounting method and ABC implementation

Value df
Linear-by-Linear
9.858 1 .002
Association
N of Valid Cases 69
27
system. From the above analysis we can conclude that firm size (when measured in
term of number of employees), percentage of overhead cost to the total cost, cost
audit compliance and method of accounting are the significant factors which affects
the decision for the implementation of ABC system while factors such as Diversity
of the product, Separate cost accounting department and Listing of the company are
not statistically significant for the adoption of ABC system. The study has provided
additional insights into areas relating to factors affecting implementation of ABC
system (i.e. cost audit compliance and method of accounting) and extended the scope
of future research.
LIMITATIONS
Like other studies, the present study is also having some limitations. The interpretations
are based on the basis of information received so the study may be affected due to the
respondent biasness. The outcome of the present study may not be applicable for the
other companies. The results are confined to sample units only. As the study is related
to costing system many companies were not ready to share their information, so we
have to restrict the finding of the study on the sample unit of 72 only, otherwise the
sample should be large to get more concise results.
SCOPE FOR FURTHER STUDIES
The present study is restricted to only the factors affecting implementation of ABC
system. Other factors can also be analyzed to examine the relationship between factors
determining the adoption of ABC system. Further there is a scope to study the motives
behind implementation of the ABC system, challenges faced during the implementation
and reasons for not adopting ABC system. Study can be done for micro and small
level firm. We have considered only manufacturing sectors only further study can be
conducted by taking service sector also.
28
REFERENCES
Ahmadzadeh, T. (2011). Exploration of factors influencing on choice the activity-

based costing system in Iranian organization. International Journal of Business
Administration, 2(1), 61–70.
Arora, A. K., & Raju, M. S. S. (2017). The effect of product diversification on the
adoption and implementation of activity based costing. Splint International Journal
of Professionals, (January), 8-10.
Arora, A. K., & Raju, M. S. S. (2017). The effect of firm’s size on the adoption and
implementation of activity based costing. OJAS-An International Journal of Research
in Management, 4(7), 36–40.
Bjornenak, T. (1997). Diffusion and accounting: The case of ABC in Norway.
Management Accounting Research, 8(1), 3–17. doi:10.1006/mare.1996.0031
Brierley, J. A. (2008). An examination of factors influencing the level of consideration
for ABC. International Journal of Business and Management, 3(8), 58–67.
Brown, D. A., Booth, P., & Giacobbe, F. (2004). Technological and organizational
influences on the adoption of activity based costing in Australia. Accounting and
Finance, 44(3), 329–356. doi:10.1111/j.1467-629x.2004.00118.x
Elhamma, A. (2012). The Relationship between Firm Size, Activity Based Costing
and Performance: An Application on Moroccan Enterprises. Journal of Accounting-
Business and Management, 19(1), 90–102.
Gosselin, M. (1997). The Effect of Strategy and Organizational Structure on the
Adoption and Implementation of Activity-Based Costing. Accounting, Organizations
and Society, 22(2), 105–122. doi:10.1016/S0361-3682(96)00031-1
John, A. O. (2014). Effects of Firm Size on Activity-based Costing Implementation
in Nigerian Manufacturing Sector. International Journal of Innovation and Scientific
Research, 3(1), 82–87.
Rbaba’h, A. (2013). The influence of company characteristics factors to activity based
costing system implementation. Journal of Education and Vocational Research, 4(2),
36–46.
Salawu, R. O., & Ayoola, T. J. (2012). Activity based costing adoption among
manufacturing companies in Nigeria. Journal of Modern Accounting and Auditing,
8(1), 40–45.
Cagwin, D., & Bouwman, M. J. (2002). The association between activity-based costing
and improvement in financial performance. Management Accounting Research, 13(1),
1–39. doi:10.1006/mare.2001.0175
29
Amit Kumar Arora is serving as an Assistant Professor in KIET School of Management, KIET
Group of Institutions, Ghaziabad. Pursuing PhD from IGNOU-New Delhi. He is an Associate
Member of Cost and Management Accountants (ACMA), UGC-NET, M.B.A. (Finance), M.Com,
M.A. (Eco.), PhD(P). He has more than 15 years of academic and corporate experience. His
areas of interest are accounting, finance and economics. He is the author of two textbooks in
the area of management. Various papers have been published in reputed research journals
including the Journal of ICAI-CMA.
M.S.S. Raju has 33 years of teaching and research experience in higher education. He has
guided 2 PhDs and 1 M.Phil and is currently guiding 8 PhD & 2 M.Phil scholars. He has about
30 publications including 1 book. He has worked as a director academic coordination division,
Director(I/C) research unit and is presently working as a Registrar MPDD in IGNOU. He is a
member of various committees and organized about 25 workshops/seminars at different places
across the country.
30

Factors Affecting Implementation of Activity Based Costing in Selected Manufacturing Units in India

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Factors Affecting Implementation of Activity Based Costing in Selected Manufacturing Units in India

Uploaded by

Copyright:

Available Formats

International Journal of Risk and Contingency Management

Volume 8 • Issue 3 • July-September 2019

Factors Affecting Implementation of

OBJECTIVES OF THE STUDY

DEVELOPMENT OF THE HYPOTHESIS

4. Listing of the Company and Use of ABC System: A listed company is

Data Collection Procedure

Factors such as product diversity (increase in the number of products), increase in

DATA ANALYSIS AND FINDINGS

Implementation Rate of ABC System

Association Among Firm Size, Diversity of the Product and Percentage

Table 1. Omnibus tests of model coefficients

Table 2. Model summary

Step -2 Log Likelihood Cox and Snell R Square Nagelkerke R Square

Table 3. Classification table a

Table 4. Variables in the equation

B S.E. Wald df Sig. Exp(B)

Association Between Factors i.e., Listing of the Company,

Table 5. Chi-square test- listing of the company and ABC implementation

Asymp. Sig. Exact Sig. Exact Sig.

Table 6. Chi-square test- cost audit compulsion and ABC implementation

Asymp. Sig. Exact Sig. Exact Sig.

As per Table 7 we can analyze that there is no association between Separate

Table 7. Chi-square test- separate cost department and ABC implementation

Asymp. Sig. Exact Sig. Exact Sig.

Table 8. Chi-square test- accounting method and ABC implementation

Asymp. Sig. Exact Sig. Exact Sig.

SCOPE FOR FURTHER STUDIES

Ahmadzadeh, T. (2011). Exploration of factors influencing on choice the activity-

You might also like