The Factors Effective in a Succeed Implementing Activity Based Costing and Management

Activity based costing/management system is one approach which its lunching and implementing in practice will bring advantages for the users. However, lake of knowledge to the ones leadings ineffectiveness of lunching and implementing activity based costing, budgeting and management systems will lead to wasting of financial and human sources in an organization. Organizations have no choice but rebuilding and recovering the failured systems due to being of many advantages. Such a process needs much more investing and using more resources. So, we should be aware of the ones bringing failure and we should try to put the approaches suggested in such an article from theory to practice consciously. In this article having had a close look at pros and corns of using ABC/ABM, the author has mentioned the different reasons of failures, when implementing, and the deterrent ways. The reasons can be classified in the five groups including deterrent reasons, technical weakness, the user denial, organizational obstacles and others. The deterrent reasons are the most common and significant ones. Technical weakness is due to factors stemmed from nature activity based systems. Also if should be noted that for some reason, the users may deny its usage and there are some obstacles in organization and the existing specific characteristics in entities will cause the system implementation failure. To know the issues and ones causing the issues and to avoid them is the origin of implementation and the success of such systems.