The implementation of an activity-based costing system in a service organisation with specific reference to Telkom

M.Com. ( Business Management)This study wants to express an opinion on the implementation of an activity-based costing system in a service company with specific reference to Telkom SA Ltd. (hereafter Telkom), which has implemented a costing system as a first step towards an activity-based costing system. This studyis seenas a follow-up study on the work doneby Van Dyk(1993), which was also seconded to the Cost Management team within the Financial Management section of Telkom. His research paper was entitled: "Activity-based costing as a managerial control measure in a service organisation". His work in chapter one on the historical overview of accounting, the evolution of cost management systems and the description of the cost accounting system of Telkom must be seen as stepping stones on which this study will build. In chapter two Van Dyk(1993) concentrated on the influence oft he five competitive forces in the formulation of a generic strategy and the role of the value chain concept in order to understand the behaviour of costs. All of this work must be seen as the foundation and complementary to this study