Developing an ABC Model:A Case Study of Indian Company

Cost is the important part of decision making process and its contribution cannot be ruled out. Traditional cost accounting techniques deal with the traditional measures of cost control. Overheads are the black spots which cannot be deciphered and inferred easily. Measuring the overheads is one of the major areas of concern for modern firm in current situation. Each and every organisation requires customized information in their day to day decision making process. In addition, the precised and fast information adds value to the managerial decision making inputs. However, the traditional accounting system is not potent enough to mitigate the current crisis. Activity based costing preserves the potency to deal with the overheads and acts more like a performance management tool. The proliferating acceptance of ABC in manufacturing industries across the nations applauds the supremacy of the model and justifies its applicability in Indian contexts. This study attempts to design a framework of an ABC model which would meet the requirements of industries pertaining to the cost information for improving the managerial decision and gaining organizational productivity and enduring sustainability. The study presented in the paper validates the robustness of ABC Model in Indian context under the current scenario.