Question

behavioural issue many be important in implementing and ABC system .which of the following are some of the methods employed to minimize adverse outcomes

a.use a top down approach

b.use a bottom up approach

c.ensure all employees have a sences of ownership in the system

Answer 1

In activity based costing system, labour is an influencing snd driving force for the success of the abc system and hence, the overall organisation. Hence, the behavioural patterns of the employees become important and noteworthy in implementing such a system. To increase the employee involvement and to achieve the success of abc system, the bottom up approach should be implied in the organisation. The bottom up approach gives the employees a sense of decision making and involvement in the organisation. They feel important and work positiviley and passionately towards achieving the goals as they consider themselves an integral part of organisation. This behaviour of the employees can be beneficial while implementing the activity based costing as the employees will be working with dedication and 100% efficiency, which otherwise would not be possible if they are just told to do the work like any other day, where they have no sense of importance in the firm. The high boosted morale of employees is the driving force towards any organisation's success and this can be achieved using bottom up apporach and it will also help in successful implementation of ABC system.