The effect of current activity-based costing (ABC) implementation in Eskom’s finance field

The main objective of this research study was to identify the factors that have a direct influence on the successful implementation of activity-based Costing (ABC) within the Eskom finance division. The secondary objectives are: • to determine whether ABC will be successfully implemented; • to determine the benefits of ABC; and • to determine the effect of external factors on the successful implementation of ABC. Aim: To achieve the above stated objectives, questionnaires and focus group interviews were performed within Eskom. Method: The selected employees were asked to respond to the questionnaire on their experience and their perceptions on the current implementation of ABC within Eskom Distribution Free State Grid. Findings: The findings indicated that there was not sufficient guidance from top management with regards to the implementation of ABC within Eskom Distribution Free State Grid. Conclusion: More clear and concise top-down communication as well as intense user specific training manuals, current system enhancements and more clear inter and intra communication between departments are necessary.