Testing Activity‐based Costing Relevance: Pharmaceutical Products Limited – A Case Study Available to Purchase

Examines the recent debate concerning traditional versus activity‐based approaches to management accounting information in general and product costing/pricing decisions in particular. Tests the relevance of activity‐based costing techniques in a real‐life manufacturing environment – pharmaceutical products. Examines the impact on product costs of changing to an activity‐based overhead allocation environment. The pilot results were sufficiently encouraging to suggest improved management information arising from a full‐scale implementation.