This research aimed at studying the business process of “Platform Plus Limited” (PPL) and providing recommendations to implement Activity Based Costing (ABC) into the company. The research was focused on understanding the business process of the service ‘Centralised Rostering’ and providing suggestions on implementing the ABC system and ascertaining the cost that would incur.
This study used mixed research methods. Interviews were conducted with three employees to analyse the policies and procedures in the service conducted and their personal opinion on the service; observations were also carried out. The qualitative data was analysed using a thematic approach and cost information in cost calculation.
This research compares and contrasts the existing cost calculation technique of Traditional Costing and ABC. The researcher has analysed the activities carried out by the process and the total time allocated to each task, thereby allocating the cost to each task and accounting for total cost.
The researcher will propose steps to implement ABC at PPL after accounting the findings and considering the steps used by other service organisations when implementing ABC. Implementation of ABC has a higher tendency to succeed at PPL as the company has firm support from the management and is backed by the employees.