An evaluation of costing systems to promote sustainable financial growth within small-medium enterprises

Nurcombe, H and Akin, I ORCID: 0000-0003-0918-7441 (2024) 'An evaluation of costing systems to promote sustainable financial growth within small-medium enterprises.' Siyaset, Ekonomi ve Yönetim Araştırmaları Dergisi, 12 (1). pp. 105-134.

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Abstract

This research evaluates the effectiveness of the traditional and activity-based (ABC) Costing systems in promoting sustainable financial growth in UK-based small-medium enterprises (SMEs). Specifically, it aims to understand the differences between traditional costing and ABC systems and their impact on organizational competency and financial growth. A mixed-method approach, including qualitative and quantitative data analysis, was employed. The study concludes that ABC is the most effective costing system for promoting sustainable financial growth in SMEs. Traditional costing leads to inaccurate data and hindered management competency. ABC eliminates cost distortion, aids decision-making, and encourages long-term development. Additionally, the availability of a wider range of products/services positively impacts financial growth. While the initial implementation of ABC may be costly, it offers long- term benefits, including improved organizational competency and profitability.

Item Type:	Article
UN SDGs:	Goal 9: Industry, Innovation and Infrastructure
Keywords:	traditional costing, activity-based costing, management accounting, sustainable financial growth, SMEs
Subjects:	H Social Sciences > HG Finance
Divisions:	Bath Business School
Date Deposited:	05 Jul 2024 13:38
Last Modified:	05 Jul 2024 13:39
ISSN:	2147-7035
URI / Page ID:	https://researchspace.bathspa.ac.uk/id/eprint/16346

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