Managerial Accounting in the Telecommunications Sector
Abstract
Unprecedented changes have occurred in the European telecommunications industry in the last 15 years. Broadly those changes have followed transformations in the international telecommunications market. Technological innovation, growing customer demand, and pressures from the European Union and the World Trade Organization for deregulation, have been the main forces for change. When companies were faced with the prospect of competition being introduced into the EU telecommunications market, most of them were not concerned with calculating product and service costs. Activity-based costing and management (ABC/M) became regarded as the solution for enhancing telecommunications competitiveness and legitimating interconnection rates set to the new operators that came into market.