Authors:
Dr Manoj Anand
Dr B S Sahay
Subhashish Saha,

ABSTRACT
This is a study of activity-based cost management practices, in a value-chain analytic framework, being followed by the corporate India. A nationwide survey has been conducted to capture the issues in the design and applications of contemporary cost and management tools.
The examination of responses conditional on ABC-adoption revealed that the firms who have adopted ABC were significantly more successful in capturing accurate cost information for value chain analysis and supply chain analysis vis-à-vis the firms who had not adopted ABC. The extent of ABCM adoption in the service sector had not been found significantly different from that in manufacturing sector.
To have detailed information on value added and non-value added activities followed by the need to be competitive in the industry in terms of price quality and performance is the major motivation for the introduction of the activity-based costing. The management motivations for adoption of activity-based costing is significantly higher in case of manufacturing sector firms vis-àvis service sector firms only in case of product/service pricing decisions. The need for customer profitability analysis and budgeting led the corporate India to extend their ABC-systems from basic level to advanced level, extending it to facility level and customer level activities.