The Activity-Based Costing (ABC) has achieved great attention in Denmark by now but no large survey exists concerning motives for implementing ABC in Denmark. Characteristic of the present situation is the lack of information concerning the current state of cost ac-counting practice. This paper reviews the result of a questionnaire survey of 90 respon-dents from Danish medium-size and large manufacturing companies. The analysis is based on a LISREL (LInear Structural RELation) model. The objective of the LISREL model is to test covariance-structures among latent and manifest variables where latent variables cannot be directly measured. Different variables related to relevance, size of the company, and sources for knowledge of ABC are tested. The findings show that a relatively large number of companies now have adopted ABC as a new cost management technique. The results also show that sources such as education, journals consultants, networks etc. have a great influence on knowledge and utilization of ABC in the company. Compared to the results in other international studies we found that Danish companies seem to be more interested in relevant parts of ABC other than the whole concept.
Management Accounting, 2004, p. 1-22
ABC; Motives; LISREL; Statistical Analysis; Survey; Use and Benefit; Attitude
Main Research Area:
27th Annual Congress of the European Accounting Association, 2004
The Aarhus School of Business, Department of Accounting