The impact of contextual and process factors on the evaluation of activity-based costing systems

This paper investigates associations between evaluations of activity based costing (ABC) systems, contextual factors, and factors related to the ABC i mplementation process using interview and survey data from 21 held research sites of two firms. Structural equation modeling is used to investigate th e fit of a model of organizational change with the data. The results suppor t the proposed model; however, the significance of specific factors is sens itive to the evaluation criterion. The model is stable across firms and res pondents, but is sensitive to the maturity of the ABC system. (C) 1999 Else vier Science Ltd. All rights reserved.