impacts of activity-based costing on the financial performance of the Czech Republic
The purpose of the reviewed article was to determine the impacts of activity-based costing on the financial performance of the Czech Republic. The authors documented that ABC is a model that provides accurate and comprehensive information about the costs as well as company performance. This is imperative since it contributes to effective decision making. An empirical survey was conducted for 540 Czech medium-sized and large companies from various sectors (Pokorná, 2016). The collected data was analyzed using SPSS software. A correlation test was run. The results of the study revealed a positive relationship between activity-based costing and financial performance in the Czech Republic.
The purpose of the reviewed article was to determine the relationship between ABC, business strategy, and performance of the organization in Arab countries. The study embraced the use of questionnaires to obtain data from these enterprises. The collected data was analyzed using SPSS software to aid in generations of the desired results (Huynh, 2013). The study revealed that 12.9% of the participating company was embracing the use of activity-based costs. A regression test was run, which indicated that business strategy had no significant influence on the adoption of new accounting systems. Embracing activity-based costing has significantly contributed to the improvement of the performance of the enterprises, especially those based in developed countries.
The primary aim of the reviewed article regarding master budgets was to determine how institutionalized practices such as budgeting change and examination of the implication of those changes on budgeting functions. The authors documented the critical role of accounting, which comprised of planning evaluation and controls (Najafi & Ahmadkhani, 2012). The findings of the study revealed that new accounting tools are replacing the budgeting statement. The approaches beyond the budgeting they comprise of forecasting and target settings. The other article documented that the master budget sums up all divisional budgets for the organization. Masters’ budgets are usually prepared on an annual basis (Phaup, 2018). The budget is imperative since it contributes to effective planning, financial measurement, and interdivisional coordination.
Activity-based costing entails the identification of the organization activities and assigning of costs of each activity. The lesson learned from the above article with regard to activity-based costing includes. Effective assigning of costs is essential since it contributes towards the attainment of profit maximization goals of the organizations. This is imperative since it contributes to the improvement of organizational performance and productivity (Pokorná, 2016). Master budgeting is imperative since it contributes towards effective budgeting for functional areas within the organization. The lesson learned includes effective budgeting is essential since it contributes towards effective management of the scarce resources within the organization leading to organization prosperity in the competitive environment.
Managers have the primary responsibility of planning, coordinating, staffing, directing, as well as directing. As a manager, I will apply the concept presented in activity-based costing to aid in effective decision formulation for the organizations and management of the costs to aid in attaining the desired profit margin for the organization in the competitive environment (Pokorná, 2016). Budgeting is imperative since it contributes to the effective allocation of resources within the organization. As a manager, this is essential since it ensures that the scarce resource is wised utilized within the organization leading to improvement of the organization’s performance.