1. Implementation of activity based costing in Malaysia : A case study of two companies” by Jamaliah Abdul Majid, Maliah Sulaiman (2008) EPPM 2033 COST ACCOUNTING SET 1 KHOR YEN YI A143427 Pn AINUN BT HAJI ABD MAJID

2. What is ABC ? CIMA (Chartered Institute of Management Accountants) defines ABC as an approach to the costing and monitoring of activities which involves tracing resource consumption and costing final outputs.

3. Purpose / Objective / Aim To document and highlight the problems and benefits of implementing activity-based costing (ABC) in two companies in Malaysia

4. Methodology Case study Multinational company

5. Findings Factors that motivated the Implementation of ABC Process of ABC implementation Problems faced during Implementation Benefits gained Do s and Don’t s

6. Factors that motivated the Implementation of ABC Improve company’s strategic product pricing Facilitate process improvement Feel that traditional costing system not reliable Desire to try new tool

7. Process of ABC implementation (1) initiation and adoption; (2) design; (3) implementation; and (4) use of information.

8. Problems faced during Implementation costly, non-user friendly, tailor-made software getting top management’s commitment

9. Benefits gained Increase the efficiency in the company’s manufacturing process providing more accurate information on costs and pricing, improving the company’s competitive position in the respective industry reduce wastage and rework time **the benefits derived from ABC implementation were not immediate

10. Do s and Don’t s

11. Conclusion & Reviews / Opinions ABC is a tool worth of trying May face some problems in the early stage but can be avoided Benefits out number the constraints Strongly recommended ABC

12. THANK YOU