## Installing a Costing System — Practical Difficulties and Solutions

When introducing a new costing system in a manufacturing company, resistance and operational challenges are common. Exam questions typically ask for both the difficulty and its remedy.

### Four Key Difficulties and Their Solutions

#	Difficulty	Root Cause	Solution
1	Lack of top management support	Management views costing as interference, added paperwork, or a surveillance mechanism	Convince top management of the utility and value of the system through evidence and communication
2	Resistance from accounting/cost department staff	Fear of losing jobs or importance after implementation	Adopt a behavioural approach; involve and reassure staff during transition
3	Non-cooperation from user departments	Foremen and supervisors fear increased responsibilities and paperwork	Behavioural change management; regular meetings to clarify expectations
4	Shortage of trained staff	Costing system installation requires specialised expertise	Provide proper training at each organisational level

### Summary of Remedies

1. Demonstrate value to top management

2. Behavioural approach for resistance and non-cooperation

3. Level-wise training for all staff

4. Regular cross-functional meetings to address doubts and misconceptions

⚠️ Common exam mistakes

Listing only difficulties without the corresponding solutions — exam questions almost always require both
Ignoring the human/behavioural dimension — resistance is as much a people problem as a technical one, and the behavioural approach is the key remedy for two of the four difficulties
Confusing resistance from accounting staff (internal) with non-cooperation from user departments (foremen, supervisors) — these are distinct groups with different fears

Reference:

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