Authors : Seyed Mehdi Khadem, Iraj Ahmadi, Dariush Rahmati and Ali Yavari
Abstract: Activity-Based Costing (ABC) which is an important management subject in production, service and governmental organizations is defined as a method that scales the final cost and the efficiency of the costs’ activities, resources and goals. This modern system is a paradigm or revolution in the field of traditional costing. The goal of this study is to review organizational obstacles of implementing Activity-Based Costing (ABC) in the Police University. Unlike other countries that give a lot of attention to this system in our country and especially in the Police University it receives no attention and the reason is the lack of knowledge and support of the executives and employees from this system and also the shortage in professional work force in implementing this system and lack of satisfaction with this systems’ performance. The goals of the Activity-Based Costing System are in the same line as the goals of the organization and the culture and strategy of the organization. Even though operators of this system may be very skilled but if the users and executives were not well-trained they face a great obstacle in utilizing this system. The research was incorporated in a scaling method and to test the studys’ hypotheses, the t-test with the assurance level of 95% was used. To prioritize the obstacles of effective implementation, the Choprov coefficient was utilized. The needed information were selected and collected through the distribution of a questionnaire after applying the opinions and comments of experts and professionals in the research topic in the field of Activity-Based Costing (ABC) to clarify and eliminate the vagueness of the questions and increase the validity with the stability of 90% between the professors of the financial department of the Police University. Results from this study show that there is a significant connection between applying Activity-Based Costing (ABC) with environmental, technical and human conditions. Therefore, it is suggested that with regard to these obstacles, measures be taken in order to eliminate them so that the application of Activity-Based Costing (ABC) is successfully done.
Seyed Mehdi Khadem, Iraj Ahmadi, Dariush Rahmati and Ali Yavari, 2016. Reviewing Organizational Problems with Respect to the Implementation of Activity-Based Costing in the Police University. International Business Management, 10: 2109-2114.