Evaluating The Implementation Of Activity-Based Costing At The Government Institutions Pension Fund In Namibia

Abstract

This thesis explores the adoption and implementation of ABC in 2009 by the Government Institutions Pension Fund in Namibia. The purpose of this study is to evaluate whether the implementation of ABC at the GIPF was effective. The aim of this study is to determine the benefits achieved as well as the barriers and challenges that might have been encountered thus far in the implementation of ABC at the GIPF. This study is an empirical investigation, which analyses the experiences and perception of ABC in the pension fund industry. The population of the study is one hundred and ninety-seven GIPF employees. The study used a sample of thirty-eight staff members. The primary data for the study was collected using a questionnaire. Tables, frequencies, percentages and narratives were used for the presentation of findings. Twenty-seven questionnaires were returned, thereby achieving a 71% return rate. The study found that resistance to change, time-consuming cost driver identification, the high cost of consultants, focusing priorities on other projects and the volume of work required to implement ABC were barriers to effective implementation. The study found that the implementation of ABC led to cost reduction, quality decision-making and improvement in management reporting. GIPF employees were of the view that the adoption of ABC was properly implemented. The study recommended that the adoption of the ABC system should involve all departments, management commitment and a continuous review of postimplementation reports, provision of training, involvement of employee representatives and measurement of improvements achieved. The study recommended that further studies be undertaken using larger samples and different research designs and methodologies including sectorial and comparative studies.