Question

why did ABC fail at the bak of china?

Answer 1

Ans. Few authors have explored the implementation of Activity-Based Costing (ABC) in East-Asian companies. This study investigates factors that led to the failure of an ABC implementation at a major Chinese financial institution - Bank of China. By interviewing 18 employees at one branch, our study reveals six factors that blocked the implementation. These are the lack of clear business purpose, a lack of education about ABC, poor model design, a lack of participants, individual and organizational resistance to change and the fact that few outsourcers were available. The study represents a real example of why ABC implementation might fail in an organization