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This article discusses Activity Based Costing (ABC) model and its importance in cost control for organizations. It analyzes two research studies on ABC model and their findings, highlighting similarities and differences. The article also provides four specific outcomes or lessons learned from the research findings that will be useful for management accountants in Australian companies to learn from.

nnin ead MA A A A TRu g h : N GERI L CCOUN ING 1
Mana erial Acco nting u g
ameN
Pro e orf ss
n tit tionI s u
ateD
ord o ntW C u : 3,162

MA A A A TN GERI L CCOUN ING 2
TA T TBLE OF CON EN S
APTCH ER PAGE
ec ti e mmarEx u v Su y.........................................................................................................................................................3
ntrod ctionI u ....................................................................................................................................................................3
planation o Acti it a ed o tin A ModelEx f v y B s C s g ( BC) .......................................................................................................4
T e p rpo e o t e t o t die and at re earc e tion t e et o t to e plore a o th u s f h w s u s wh s h qu s s h y s u x b u
Acti it a ed o tin A modelv y B s C s g ( BC) ................................................................................................................................5
imilaritie and i erence in t e indin o t e t o t dieS s D ff s h f gs f h w s u s......................................................................................8
i. imilaritieS s……………………………………………………………………………………………………………………………………..…..8
ii. i erenceD ff s…………………………………………………………………………………………………………..……………………………..9
o r peci ic o tcome or le on learned rom t e t o t die re earcF u s f u s ss s f h w s u s' s h
indin t at ill e e l or mana ement acco ntant in A tralian ompanie to learn romF gs h w b us fu f g u s us C s f ............................10
oncl ionC us .....................................................................................................................................................................13
i lio rapB b g hy..................................................................................................................................................................14

MA A A A TN GERI L CCOUN ING 3
ec ti e mmarEx u v su y
Acti it a ed o tin A model i con idered an e ential model o co tin and co tv y B s C s g ( BC) s s ss f s g s
control t at i e l in an man act rin or ani ation t i al a important or or ani ationh s us fu y uf u g g z . I s w ys f g z s
to con ider adoptin practice o mana erial acco ntin t at are e t ited to t eir peci ics g s f g u g h b s su h s f
trate ic oal and o ecti e e earc a indicated t at tem o acco ntin are nots g g s bj v s. R s h h s h sys s f u g
ni orml applica le to all companie d e to t eir ar in ran e o operational acti itie t atu f y b s, u h v y g g f v s h
are per ormed ario or ani ation T e main oc o t i paper i on t o article itf by v us g z s. h f us f h s s w s w h
re ard to Acti it a ed o tin A model ic i ed man or ani ation t atg v y B s C s g ( BC) , wh h s us by y g z s h
nder tand t e al e and importance o acc rate and proper allocation o o er ead oru s h v u f u f v h s
indirect co t T e re lt rom t e indin o t e e t o re earc t die a e een eds s. h su s f h f gs f h s w s h s u s h v b us by
mana ement acco ntant in A tralian companie in nder tandin t e di c ed co ting u s us s u s g h s uss s g
model.
ntrod ctionI u
T e main p rpo e o t i paper i to di c t o re earc a ed o rnal article relatinh u s f h s s s uss w s h-b s j u s g
to Acti it a ed o tin A T e e t o article di c ed arev y B s C s g ( BC). h s w s s uss “
mplementation o t e
I
f h
Acti itv y a ed o tin Model or a arm An A tralian a e
b s C s g f F : us C s ” and
T e mpact o Acti it a ed
“ h I f v y b s
o tin on r ani ational Per ormance
C s g O g z
f ” T e paper e plain t e Acti it a ed o tin A. h x s h v y B s C s g ( BC)
met od and di c e t e p rpo e o t e t o t die a ell a at re earc e tion t eh s uss s h u s f h w s u s s w s wh s h qu s s h y
et o t to e plore a o t t e topic Additionall t e imilaritie and di erence in t e indins u x b u h . y, h s s ff s h f gs
o t e t o t die are al o di c ed in t i paper a ell a o r peci ic o tcome or le onf h w s u s s s uss h s , s w s f u s f u s ss s

MA A A A TN GERI L CCOUN ING 4
learned rom t e re earc indin o t e t o t die t at ill e e l or mana ementf h s h f gs f h w s u s h w b us fu f g
acco ntant in A tralian companie to learn romu s us s f .
planation o Acti it a ed o tin A ModelEx f v y B s C s g ( BC)
Acti it a ed o tin A met od i an approac o mana erial acco ntin icv y b s C s g ( BC) h s h f g u g wh h
identi ie co t o o er ead o acti itie and t en allocate c co t to o ect Acti it a edf s s s f v h s f v s h s su h s s bj s. v y b s
o tin A met od can e e plained in ot er ord a a a o allocatin or a i ninC s g ( BC) h b x h w s s w y f g ss g g
indirect co t o o er ead to t e ario department or prod ct it in an or ani ations s f v h s h v us s u s w h g z ,
ic elp it in eneratin t e co t d rin t e proce e o prod ctionwh h h s g g h s s u g h ss s f u opo nidi(Z u s, 2008).
T e main oc o Acti it a ed o tin A met od i to identi acti itie or proce e oh f us f v y b s C s g ( BC) h s fy v s ss s f
prod ction ic are in proce in a o c indi id al o acti itie are t en placed to et eru , wh h ss g j b. Su h v u j b v s h g h
into ro p a in proce e t at are imilar and into a pool o co t relatin to a in le co tg u s h v g ss s h s , f s s g s g s
dri er o acti itie T e e pool o co t are t en e al ated anal ed and allocatedv f v s. h s s f s s h v u , yz
predetermined rate o o er ead ic i later a i ned to all indi id al prod ct and o Af v h wh h s ss g v u u s j bs. s
alread di c ed Acti it a ed o tin A met od i proce t at in ol e m ltiple tepy s uss , v y b s C s g ( BC) h s ss h v v s u s s.
o e er it i a m c more acc rate met od or approac o allocatin indirect co t toH w v , s u h u h h f g s s
prod ct and department in a proper manneru s s, (Mallouk, 2009).
Acti it a ed o tin A met od a i t mana erial acco ntant in allocatinv y b s C s g ( BC) h ss s s g u s g
o er ead e pen e to prod ct and o a ed pon t e amo nt or n m er o acti itiev h x s s u s j bs b s u h u u b f v s
needed or prod cin t e peci ic prod ct rat er t an impl ettin an e timate o t ef u g h s f u s, h h s y g g s f h
amo nt ed eac ou us by h j b ( oo AR s & S.- , 2011). A i nment or allocation o indirect co t in ass g f s s
proper and acc rate a i er e ential or mana ement e peciall in ca e ere t e irm iu w y s v y ss f g , s y s s wh h f s

MA A A A TN GERI L CCOUN ING 5
e periencin do n i e or it i o t o rcin certain er icex g w s z s s u s u g s v s. T i i eca e department ich s s b us s wh h
are i l pro ita le can e allocated indirect co t t ma in t em e ie ed ah gh y f b b s s, hus k g h b v w s
npro ita le rom a t eoretical or paper or ie rt ermore a ed pon peci icu f b f h w k v w. Fu h , b s u s f
e al ation a irm mana ement can c oo e not to contin e carr in o t ome operation andv u s, f ’s g h s u y g u s s
t do n a pro ita le department or ranc d e to improper and incorrect di tri tion oshu w f b b h u s bu f
co ts s ( imaniBh , 2012). T i lead to compo ndin o t e pro lem ince pon clo re o t eh s s u g f h b s s u su f h
department or rac e ic are pro ita le t e one le t are t o e ic are npro ita les b h s wh h f b , h s f h s wh h u f b .
lo in t e ranc irm ic a pro ita le ca e t e irm to e na le to co er or ettle itC s g h b h f wh h w s f b us s h f b u b v s s
i ed co t n addition to t i o t o rcin i i ni icantl a ected improper allocation of x s s. I h s, u s u g s s g f y ff by f
indirect co t or in tance t e mana ement o a irm ma con ider o t o rcin a a c eapers s. F s , h g f f y s u s u g s h
option d e to improper and inacc rate allocation o co t n c ca e o t o rcin ma eu u f s s. I su h s s, u s u g y b
act all e i ni icantl e pen i eu y b s g f y x s v ( elto rootS & G , 2013).
T ere are t ree a in ic Acti it a ed o tin A met od impro e t eh h w ys wh h v y b s C s g ( BC) h v s h
proce o co tin or in tance it increa e t e n m er o pool o co t ic can e tili edss f s g. F s , s s h u b f s f s s wh h b u z
or a em lin co t o o er eadf ss b g s s f v h s. T i i done poolin co t acti itie rat er t anh s s by g s s by v s, h h
ro pin al co t in one poolg u g s s ( eedle Po er ro onN s, w s & C ss , 2008). Acti it a ed o tin Av y b s C s g ( BC)
met od al o a i n co t o o er ead to prod ct in a manner t at t e co t are a i nedh s ss g s s s f v h s u s h h s s ss g
a ed pon t e acti itie ic enerated t em rat er t an pon mea re o ol meb s u h v s wh h g h , h h u su s f v u s.
inall Acti it a ed o tin A met od c an e t e nat re o ario co t ic areF y, v y b s C s g ( BC) h h g s h u f v us s s wh h
indirect T i ma e co t ic ere pre io l termed a indirect incl din depreciation. h s k s s s wh h w v us y s , u g ,
identi ia le to certain acti itief b v s ce(Lu y, 2009).

MA A A A TN GERI L CCOUN ING 6
T e P rpo e o t e T o t die and at e earc e tion T e et t To plore A o th u s f h w S u s Wh R s h Qu s (s) h y S Ou Ex b u
Acti it a ed o tin A Met odv y B s C s g ( BC) h
a. T e re earc t dh s h S u y “
mplementation o t e Acti it
I
f h v y a ed o tin Model or a arm An
b s C s g f F :
A tralian a e
us C s ”
T i re earc i primaril p rpo ed or de elopin an nder tandin on o t e modelh s s h s y u s f v g u s g h w h
o acti it a ed o tin A can e implemented in arm T e re earc i al o aimed atf v y b s C s g ( BC) b f s. h s h s s
e aminin i e t at are related to implementation o t e Acti it a ed o tin A modelx g ssu s h f h v y B s C s g ( BC)
in arm Tec nical actor are con idered critical in implementin t e Acti it a ed o tinf s. h f s s g h v y B s C s g
A model in arm eca e o it ni e nat re t e a ric lt ral prod ction ace i ni icant( BC) f s. B us f s u qu u , h g u u u f s s g f
c allen e re ardin co tin o t e prod cth g s g g s g f h u s ( elto rootS , & G , 2013). T i i con idered a eh s s s hug
c allen e partic larl or mana er in arm a ell a ot er or ani ation t at deal ith g , u y f g s f s s w s h g z s h w h
prod ction o a ric lt ral prod ct T i re earc i t ere ore de i ned to e amine ou f g u u u s. h s s h, s h f , s g x h w
Acti it a ed o tin A model can e implemented cce ll or t e ene it ov y B s C s g ( BC) b su ssfu y f h b f f
mana erial acco ntant and mana er in c arm and a ric lt ral related or ani ationg u s g s su h f s g u u - g z s
arr(F , 2011).
T i re earc et o t ario e tion a o t Acti it a ed o tin A model orh s s h s s u v us qu s s b u v y B s C s g ( BC) . F
in tance it an er t e e tion a to et er Acti it a ed o tin A model a t es , sw s h qu s s wh h v y B s C s g ( BC) h s h
a ilit to appl co t dri er t at are not dri en ol me and di entan le co t o re o rceb y y s v s h v by v u , s g s s f s u s
into t o ta e proce o t e co t allocation it a ie to addre in t e pro lem and i ew -s g ss f h s , w h v w ss g h b s ssu s
aced in co tin t e a ric lt ral prod ct prod ced arm and ot er or ani ation dealinf s g h g u u u s u by f s h g z s g
it a ric lt re n addition to t i t e re earc i et o t to e plore c allen e t at are acedw h g u u . I h s, h s h s s s u x h g s h f

MA A A A TN GERI L CCOUN ING 7
c arm and or ani ation in implementin t i Acti it a ed o tin A modelby su h f s g z s g h s v y B s C s g ( BC)
one(J s, 2014).
b. T e e earc t dh R s h S u y
T e mpact o Acti it a ed o tin on r ani ational
“ h I f v y b s C s g O g z
Per ormance
f ”
T i t d i mainl p rpo ed or determination o t e impact o Acti it a ed o tinh s s u y s y u s f f h s f v y B s C s g
A on per ormance o an or ani ation a ed on a contin enc per pecti e t i peci ied( BC) f f g z b s g y s v . I s s f by
t e contin enc t eor o mana erial acco ntin t at t ere i no one control tem oh g y h y f g u g h h s sys f
acco ntin t at can e applied to all or ani ation in an e al manneru g h b g z s qu (Mallouk, 2009). acE h
or ani ation e perience an en ironment o operation t at arie i ni icantl rom ot erg z s x s v f h v s s g f y f h
or ani ation and m t e al ate it care ll in a trate ic proce o plannin ing z s, us v u fu y us g s g ss f g. S
accordance it t e contin enc t eor mana ement o an or ani ation m t en re t at t ew h h g y h y, g f g z us su h h
tr ct re and trate it or con orm to t e en ironment t at e i t in order to en ance its u u s gy f s f s h v h x s s, h s
per ormance Accordin to t e n tit te o mana ement Acco ntant tem o co t controlf . g h I s u f g u s, sys s f s
are implemented or incorporatin and pportin an or ani ation o erall trate ic o ecti ef g su g g z ’s v s g bj v s,
ic are aimed at impro in it per ormance T i t d t ere ore a cond cted towh h v g s f . h s s u y, h f , w s u
in e ti ate Acti it a ed o tin A determinin it impact on t e per ormance o anv s g v y B s C s g ( BC) I g s s h f f
or ani ationg z am ert ri it ecorded oo ildan Media orporation(L b , G ff h, R B ks LLC & G C , 2014).
T i re earc t d a a re earc e tion t at it et o t to an er in it indin orh s s h s u y h s s h qu s h s s s u sw s f gs. F
in tance it i a ed on t e re earc e tion a to et er Acti it a ed o tin A Models , s b s h s h qu s s wh h v y B s C s g ( BC)
impro e per ormance o an or ani ationv s f f g z ( elto rootS , & G , 2013). n t i re ard t e t dI h s g , h s u y
attempt to re earc o Acti it a ed o tin A model en ance per ormance os s h h w v y B s C s g ( BC) h s f f

MA A A A TN GERI L CCOUN ING 8
or ani ation ic o ten operate in competiti e and comple en ironment mo tg z s, wh h f v x v s. s
or ani ation e t e traditional met od o acco ntin t at a e n mero ortcomin ag z s us h h s f u g, h h v u us sh gs s
t e do not pro ide t em it trate ic and e l in ormation or ma in e deci ion inh y v h w h s g us fu f f k g k y s s
t eir pre ent en ironmenth s v s imon(S s, 2011). A t ere i a reat need or t e mana ement os h s g f h g f
c or ani ation to ac ire ic relia le acc rate and rele ant in ormation or ma insu h g z s qu qu k, b , u v f f k g
o nd deci ion in t eir ine e t i re earc t d de i n inno ati e tool o mana erials u s s h bus ss s, h s s h s u y s g s v v s f g
acco ntin t at can e ed or c p rpo e t ro trate ic proce e o mana ementu g h b us f su h u s s h ugh s g ss s f g
artle(H y, 2014).
imilaritie and i erence in t e indin o t e T o t dieS s D ff s h F gs f h w S u s
a. imilaritieS s
T e indin o t e t o re earc t die po t late t at tem o mana ementh f gs f h w s h s u s s u h sys s f g
acco ntin and ci t control c a Acti it a ed o tin A Model are er i ni icant inu g s su h s v y B s C s g ( BC) v y s g f
an or ani ation a t e e determine o ell t e or ani ation operate t en ancin ity g z , s h s h w w h g z s, hus h g s
inancial per ormance T e t o re earc t die are a ed on t e act t at or ani ation acef f . h w s h s u s b s h f h g z s f
ario c allen e in t eir operational en ironment ic a ect t em i ni icantl in t eirv us h g s h v s, wh h ff s h s g f y h
dail operation in re ard to co t controly s g s itman c a lana an tter(G , Ju h u, F g & Zu , 2010).
T e indin o t e t o re earc t die are al o imilar in t at t e i l enco ra eh f gs f h w s h s u s s s h h y h gh y u g
and recommend or ani ation to implement and e Acti it a ed o tin A Model a ag z s us v y B s C s g ( BC) s
e tem o co t controlk y sys f s . or in tance t e re earc mplementation o t e Acti it a edF s , h s h “I f h v y b s
o tin Model or a arm An A tralian a e recommend Acti it a ed o tin A ModelC s g f F : us C s ” s v y B s C s g ( BC)

MA A A A TN GERI L CCOUN ING 9
a an approac t at can e em raced or ol in co tin c allen e o a ric lt ral prod cts h h b b f s v g s g h g s f g u u u s.
imilarl t e re earc t dS y, h s h s u y
T e mpact o Acti it a ed o tin on r ani ational
“ h I f v y b s C s g O g z
Per ormance
f ” i ni icantl ad ocate or e o Acti it a ed o tin A Model in impro ins g f y v s f us f v y B s C s g ( BC) v g
and en ancin per ormance o an or ani ationh g f f g z (Mallouk, 2009).
rt ermore t e re lt o t e t o re earc t die are aimed at pro idin importantFu h , h su s f h w s h s u s v g
le on to mana erial and co t acco ntant a ell a mana ement o a irm re ardin t ess s g s u s s w s g f f g g h
ene it o adoptin Acti it a ed o tin A Model it a ociated implementationb f s f g v y B s C s g ( BC) , s ss
c allen e and o it can impro e and impli allocation o o er ead co t to proce e oh g s h w v s fy f v h s s ss s, j bs
and department it in t e or ani ations w h h g z . T i i er important in pict rin o t t e need orh s s v y u g u h f
implementation o t i model a t e primar co t control tem in or ani ation or elpin inf h s s h y s sys g z s, f h g
monitorin and e al ation o o er ead co tg v u f v h s s orte(F s, 2011).
b. i erenceD ff s
T ere are ario di erence in t e indin o t e t o re earc t die or in tanceh v us ff s h f gs f h w s h s u s. F s ,
t e indin o t e re earc t dh f gs f h s h s u y
mplementation o t e Acti it a ed o tin Model or a
“I
f h v y b s C s g f
arm An A tralian a e
F : us C s ” are peci icall meant or e arm or an ot er or ani ation t ats f y f us by f s y h g z h
deal it prod ction o a ric lt ral prod ct n t e ot er and t e re earc indin o t es w h u f g u u u s. O h h h , h s h f gs f h
re earc t ds h s u y
T e mpact o Acti it a ed o tin on r ani ational Per ormance
“ h I f v y b s C s g O g z
f ” are
meant or e all or ani ation in eneral ic are in ol ed in prod ction o an prod ctf us by g z s g , wh h v v u f y u
t at re ire ome co tinh qu s s s g ollin(C s, 2011).

MA A A A TN GERI L CCOUN ING 10
Additionall indin o t e re earc t dy, f gs f h s h s u y
mplementation o t e Acti it a ed
“I
f h v y b s
o tin Model or a arm An A tralian a e
C s g f F : us C s ” are ma ored on implementation o an Acti itj f v y
a ed o tin A Model o co t control and c allen e t at are a ociated it itB s C s g ( BC) f s , h g s h ss w h s
implementation n t i re earc tec nical i e incl din data a aila ilit and limited acce. I h s s h, h ssu s u g v b y ss
to re o rce or carcit are o tlined a t e primar actor in l encin implementation os u s s y u s h y f s f u g f
Acti it a ed o tin A Model o co tin or arm and a ric lt ral a ed or ani ationv y B s C s g ( BC) f s g f f s g u u b s g z s
(Mallouk, 2009). n t e ot er and t e indin o t e re earc t dO h h h , h f gs f h s h s u y
T e mpact o Acti it
“ h I f v y
a ed o tin on r ani ational Per ormance
b s C s g O g z
f ” oc mainl on o Acti it a ed o tinf us y h w v y B s C s g
A Model impact per ormance o or ani ation in eneral n t i re earc t d it a( BC) s f f g z s g . I h s s h s u y, h s
een o nd o t t at or ani ation t at e t i co tin model are mo t li el to e perienceb f u u h g z s h us h s s g s k y x
red ced co t ic re lt into impro ed or ani ational per ormanceu s s, wh h su s v g z f orn ren(H g , 2011).
o r peci ic tcome or e on earned rom t e T o t die e earc indin T atF u (4) S f Ou s L ss s L F h w S u s’ R s h F gs h
ill e e l or Mana ement Acco ntant in A tralian ompanie to earn romW B Us fu F g u s us C s L F
T ere are t o le on learned rom t e re earc t dh w ss s f h s h s u y
mplementation o t e Acti it
“I
f h v y
a ed o tin Model or a arm An A tralian a e
b s C s g f F : us C s ” t at can e ed mana ementh b us by g
acco ntant in A tralian companieu s us s eal(S , 2015).
a. or in tance t e t d elp mana ement acco ntant in ainin an nder tandinF s , h s u y h s g u s g g u s g
re ardin de elopment o an A co tin model t at co er all operatin co t itg g v f BC s g h v s g s s w h
an e ception to direct material n doin t i t e mana ement acco ntant need tox s. I g h s, h g u s
con ider identi in t e ario pool o acti itie t at are nece ar or t e models fy g h v us s f v s h ss y f h
o co tinf s g (Mc ane AtrillL y & , 2013). it re ard to a ric lt ral or ani ation c aW h g g u u g z s su h s

MA A A A TN GERI L CCOUN ING 11
arm t e e acti it pool ma incl de pr nin pic in pac a in pottinf s, h s v y s y u u g, k g, k g g, g,
nc in collection and loadin o c et plantin aterin eedin applicationbu h g, g f bu k s, g, w g, w g,
o ertili er pra o c emical and plantin pla tic co erf f z s, s y f h s g s v s (Mallouk, 2009).
b. n addition to t i t e re earc indin a i t mana erial acco ntant in ainin anI h s, h s h f gs ss s g u s g g
nder tandin o t e ario i e and c allen e t at ma e aced d rinu s g f h v us ssu s h g s h y b f u g
implementation o t i A co tin model or in tance tec nical pro lem c af h s BC s g . F s , h b s su h s
limited re o rce and data a aila ilit are con idered t e ma or c allen e n t es u s v b y s h j h g s. I h
co r e o de elopin t i co tin model mana erial acco ntant can e ariou s f v g h s s g , g u s us v us
e ri tic in order to ena le it implementation eca e o limited data a aila ilith u s s b s , b us f v b y
( elto rootS , & G , 2013). or in tance ol me o ale can e ed idel orF s , v u s f s s b us w y f
allocatin co t o acti itie in ca e ere ol me co ld not e mea red ing s s f v s s s wh v u u b su us g
ot er alternati e approac eh v h s. o e er mana erial acco ntant al o learn t atH w v , g u s s h ,
alt o t e e e ri tic can e ed in implementin t e Acti it a ed o tinh ugh h s h u s s b us g h v y B s C s g
A model t e are a ociated it ario ne ati e e ect on it relia ilit o( BC) , h y ss w h v us g v ff s s b y f
co t in ormation enerateds f g ( atti anBh & Kh , 2008).
Accordin to t e indin o t e re earc t dg h f gs f h s h s u y
T e mpact o Acti it a ed o tin on
“ h I f v y b s C s g
r ani ational Per ormance
O g z
f ” mana erial acco ntant can dra important le on ic can, g u s w ss s wh h
elp t em in t eir co t mana ement roleh h h s g s e andt immel ie o(W yg , K & K s , 2018).
a. or in tance t e indin in t i re earc can elp mana erial acco ntant inF s , h f gs h s s h h g u s
anal in o inancial in ormation rom p licl reported inancial tatementyz g h w f f f ub y f s s
can e tili ed in e al ation o c an e in per ormance o or ani ation re ltinb u z v u f h g s f f g z , su g

MA A A A TN GERI L CCOUN ING 12
rom it implementation o Acti it a ed o tin A modelf s f v y B s C s g ( BC) ( am denR s , 2010).
T e re lt o t i t d a e demon trated o or ani ational per ormanceh su s f h s s u y h v s h w g z f
can e e al ated in e eral inancial mea re c a earnin per areb v u us g s v f su s su h s gs sh
P mar et price et rn on n e tment de t to e it t rno er o a et(E S), k , R u I v s , b qu y, u v f ss s,
ret rn on toc older e it and operatin per ormance T e re lt indicateu s kh ’s qu y g f . h su s
t at t e e mea re are i ni icantl ed mana ement acco ntant inh h s su s s g f y us by g u s
determinin o t ird partie c a creditor lender and in e tor areg h w h s su h s s, s v s s
intere ted in and anal e t e o erall inancial per ormance o an or ani ations yz h v f f f g z
attac ar a(Bh h yy , 2012).
b. n addition to t i t e re lt o t i re earc t d are e l to mana ementI h s, h su s f h s s h s u y us fu g
acco ntant in determinin actor ic mi t a ect or in l ence t e deci ionu s g f s wh h gh ff f u h s
o an or ani ation or irm et er or not to implement Acti it a ed o tinf g z f wh h v y B s C s g
A model( BC) . T e indin o t i re earc o tline t at alt o manh f gs f h s s h u h h ugh y
or ani ation a e een in traditional met od o co t acco ntin t e eg z s h v b us g h s f s u g, h s
met od are recommended or ma in e deci ion a t e do not i eh s f k g k y s s, s h y g v
icient and relia le in ormation on co tinsuff b f s g ( anaR , 2010). T e re lt rom t ih su s f h s
re earc i l recommend mana ement acco ntant to a andon t e es h h gh y s g u s b h s
traditional met od o co t acco ntin ic are con idered o tdated andh s f s u g wh h s u
o olete and adopt t e model o Acti it a ed o tin A ic i re ardedbs , h f v y B s C s g ( BC) wh h s g
more e l in deci ion ma in t an t e ormerus fu s k g h h f (A ra alg w , 2010).

MA A A A TN GERI L CCOUN ING 13
oncl ionC us
A per t e a o e di c ion Acti it a ed o tin A model i an approac os h b v s uss , v y B s C s g ( BC) s h f
mana erial acco ntin ic identi ie co t o o er ead o acti itie and t en allocate cg u g wh h f s s s f v h s f v s h s su h
co t to o ect Acti it a ed o tin A met od can e e plained in ot er ord a a as s bj s. v y b s C s g ( BC) h b x h w s s w y
o allocatin or a i nin indirect co t o o er ead to t e ario department or prod ctf g ss g g s s f v h s h v us s u s
it in an or ani ation ic elp it in eneratin t e co t d rin t e proce o prod ctionw h g z , wh h h s g g h s s u g h ss f u .
T e indin o t e t o re earc article di c ed a o e are er e l to mana ementh f gs f h w s h s s uss b v v y us fu g
acco ntant o A tralian companie in nder tandin t e ene it o adoptin t i co tinu s f us s u s g h b f s f g h s s g
model and a andonin t e traditional met od ic i o tdated and improper or e deci ion, b g h h wh h s u f k y s
ma in or in tance t e re lt o t e t o re earc t die elp acco ntant in determinink g. F s , h su s f h w s h s u s h u s g
actor ic mi t a ect or in l ence t e deci ion o an or ani ation or irm et er or not tof s wh h gh ff f u h s f g z f wh h
implement Acti it a ed o tin A model Additionall t e re earc indin are e l tov y B s C s g ( BC) . y, h s h f gs us fu
mana erial acco ntant in anal in o inancial in ormation rom p licl reported inancialg u s yz g h w f f f ub y f
tatement can e tili ed in e al ation o c an e in per ormance o or ani ation re ltins s b u z v u f h g s f f g z , su g
rom it implementation o Acti it a ed o tin A modelf s f v y B s C s g ( BC) .

MA A A A TN GERI L CCOUN ING 14
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