A Comparative Analysis of Perceived and Actual Benefits from Implementation of Activity Based Costing in Selected Manufacturing Units in India

The Activity based costing (ABC) technique for apportionment of overhead cost is considered superior over the traditional costing system. There are various perceived benefits before implementing the ABC system in any organization. This study is an attempt to know whether the perceived and actual results are the same or not for implementing the Activity Based Costing System in selected manufacturing units. The study is based on primary data collected through questionnaire. To analyze data, descriptive statistical method is used and to know the difference between the means of perceived benefits and actual benefits, paired sample t-test has been used through SPSS version-22. The study is based on the 52 medium and large scale manufacturing units which have implemented the ABC system. We found no significant difference between perceived scope and benefits and actual scope and benefits derived through ABC system implementation.