An Empirical Study on How Activity Based Costing is relevant to Enabling Managers take better Business Decisions

The intent of this research paper is to reveal the important parameters that Manufacturing Organisations in India should take into consideration to remain competitive. Due to the changing dynamics of business environment, organizations need to rethink their business models and strategies in order to achieve competitive edge. The reality remains that successful organizations are able to improve quality, lower their costs and take quick corrective actions around products, customers and services that incur them losses. The challenge lies in getting accurate and timely information about the parameters that define and sustain profitability-thus enabling long term competitiveness. The study intends to reveal the parameters that the Manufacturing Organisations feel they need to monitor consistently; and how shifting from Traditional costing systems to Activity Based Costing systems can help them get information on those parameters more accurately and timely.