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Essay: Cost Benefit Analysis | Term Paper Queen

Sample Essay

It is generally thought that the level of success of a system can be evaluated through the cost-benefit analysis of that system or the amount that system generates or saves for the company. The article presents a fresh perspective in this area and explains that the level and rate of success can be evaluates through four variables other than monetary values.

The four scales of measuring success in implementation of Activity Based Costing systems include the display of positive attitudes by managers and employees after implementation, the perception of employees and personnel that the information they derive from ABC systems is much better than the information obtained from conventional costing systems, managers and employee also believe or are of the view that the implementation of ABC systems actually increases their performance and the last view managers have regarding ABC systems is that the implementation improves the overall business and manufacturing processes in an organisation.

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