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Forums › ACCA Forums › ACCA PM Performance Management Forums › confused in understanding
i am little bit confused by two terms…. some times question ask implications of abc and some times questions ask implemntation of abc… what is the difference and plz what i should i explain in implications and what should i explain in implementation……plz tell me
Implication means the effect it will have on the business – for example, changing to ABC will give ‘better’ costs and so an implication is that they can fix more sensible selling prices.
Implementation is talking about the actual change over to ABC, so one of the problems about implementing is that it can be difficult (and time-consuming) to decide what is causing each of the overheads ( i.e. the cost drivers)