Abstract: For successful implementation of Activity Based Costing (ABC) information systems, like any other Accounting Information System (AIS), there are several key points to be considered. Several researchers have studied factors influencing succes s in various stages of Activity Based Costing Information Systems (ABCIS) development. However, a gap in the literature concerns a lack of research for the development of a taxonomy of heuristic principles for better implementation and successful utiliz ation of ABCISs. This paper offers a detailed analysis of ABCISs by: (i) reviewing literature studies in order to build a more exhaustive list of success factors of ABCIS. Twenty primary and twenty‑two secondary success factors are identified; and (ii ) running four rounds of grounded action research through interviews in a case study of a bank. Twenty‑seven heuristics for the successful implementation of ABCIS are derived. Finally, the paper demonstrates the extent to which each heuristic may address each main success factor. Implications of the results for researchers and practitioners are subsequently proposed.

The identification of conditions and factors under which investments in Information Technology (IT) can be expected to yield tangible returns is the subject of many productivity studies. Event study methodology, which examines the reaction in the stock price to announcements of different types of IT investments, is one approach to this kind of research. In the research presented in this paper, we use event study methodology to investigate the effect of cost management systems on payoffs from IT investments. The motivation for our research is based on the assumption that companies possessing reliable cost management systems, such as Activity‑Based Costing (ABC), are less likely to make expensive mistakes when investing in IT. Furthermore, the companies that use ABC and thus know the costs of their operation, are better able to single out those IT projects which positively impact the bottom line and competitiveness. In our study, we use a sample of three companies that are adopters of ABC, to examine the impact of 81 IT investment announcements on stock prices.