Activity Based Costing Research Paper

Activity Based Costing Research Paper-75
Entrepreneurs and the SME sector are key drivers of economic development [10,16] and job creation in SMEs requires low capital expenditures, which is important for developing countries [17,18].Another key role of the SME sector is the opportunity it provides to women, both in developed and developing countries, to be important economic players in micro and small enterprise creation and development [2].

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SMEs are more innovative than larger companies, and they develop and commercialize the majority of innovative products and services [9,10].

The European Parliament has called SMEs “civil society builders” [2].

traditional costing systems and presents arguments for the potential benefits to the world’s millions of small to medium business (SMEs) from implementing ABC.

Issues related to the implementation of ABC are discussed.

With the current explosion in population growth, 600 million jobs are needed in the next 15 years to absorb the growing global workforce, mainly in Asia and Sub-Saharan Africa (World Bank).

SMEs can potentially provide employment to these hundreds of millions of people.ABC is then presented as a means for SMEs to achieve cost savings and transparency in their operations that can help them achieve competitiveness in the global marketplace.A literature review outlines what previous researchers have found during investigations of ABC implementations in SMEs and presents a framework that shows the impact of SME characteristics and ABC implementation challenges on the implementation process and outcomes achieved.In terms of employment, the USQ has between 25 and 27 million SMEs, employing 120 million people, which accounts for 60-80% of all jobs [3-5].In the United States, small businesses have generated 63% of new jobs between 19 (US Small Business Administration).The paper finishes with conclusions and future research directions.SME Large, high-profile, multinational firms receive an overwhelmingly greater amount of media attention and name recognition, but, as the following facts indicate, the role of small to medium firms (SMEs) (here defined as those with 500 or less employees) in the USA, as well as in the economies of free-market countries around the world, is significant.Small firms lack access to technology, knowledge about modern accounting techniques, and financial backing, and are sometimes impeded by local and regional laws and regulations [21].At the same time, as argued by Jennings and Disney [22], and Danosh [23], economic instability and competition over the past few years have actually served as a catalyst for change-increased planning and greater flexibility-that can ultimately benefit SMEs.Worldwide, more than 95% of enterprises are SMEs, which account for 67% of employment in the private sector and 52% of private sector value added [1,6,7].Between 20, 85% of total employment occurred in SMEs [8].


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