Activity Based Costing In Telekom Malaysia

Activity Based Costing in Telekom Malaysia (TM) Activity Based Costing is the costing method that identifies activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption by each. The introduction of ABC in TM started in 1996 and was initiated by the Finance Division. The manager of the Network Strategic Cost Management division said that currently, ABC has not been implemented in all divisions or departments of the company. ABC is gradually introduced in the company, starting with the network or Engineering Department, followed by the Marketing Department and eventually, the Support Group Department. Presently, the ABC system is fully implemented in the

Success Story of TM

There are many success story about TM. In 2001, Telekom Malaysia introduced broadband services, establishing TM Net as the largest Internet Service provider in the South-East Asia region and launching BlueHyppo.com, a lifestyle Internet portal. It was also in 2001 that TM became a major partner in the launch of the submarine cable Asia Pacific Cable Network 2 (APCN2) and launched CDMA service fixed wireless telephony. In 2003, TM Touch was merged with Celcom, forming Malaysia 's largest cellular operator. The following year saw the restructuring of TM into two Strategic Business Units which is TM Wholesale and TM Retail. In 2005, Telekom Malaysia underwent a major re-branding exercise, adopting TM as the new brand, and was the first to launch 3G services in Malaysia. 2005 also saw the company acquire 27.3% interest in Indonesia 's PT Excelcomindo Pratama. In 2006, TM forged a strategic partnership with Vodafone, becoming a Vodafone Partner Network with a global reach of an estimated 179 million customers worldwide. The company also implemented the second phase of the restructuring exercise that it had begun in 2003. The company 's business was organised into four groups which is Malaysia Business, Celcom, TM International and TM

For example, they were able to identify the problem that led to high overtime costs. At TM, the most challenging issue at the initial stage was getting top management 's commitment. TM, on the other hand, adopted ABC in response to stiff competition from other organizations in the same industry. TM focused more on behavioural and organizational factors rather than on the technical aspects. For example, TM got its citizens deeply involved with ABC by using various means from the top management by providing favourable results in the pilot test undertaken, middle management by getting them to work with the working committee two days a week, and operational level employees by getting them to key in their activities on the website developed by the