The mid-20th century witnessed the causes for evolution of measurement and its importance. The industrial revolution also led to the same in order to cater the need of investors in big projects. Johnson (1983) also advocated this concept of performance measurement evolution as followed by a few other researchers such Dixon et al. (1990). The budgeting and financial accounting augmented by Activity Based Costing (ABC) method leads to bottom line measurement by focusing on activities and deriving unique measures for each activity. This ABC method seemed a milestone in traditional structure having more formalization. ABC systems mainly focus on activities required to produce each product or provide each service based on each product's or service's consumption of the activities (AICPA, 2005).
ABC is the costing model that identifies the cost pools or activity centers in an organization and assign the costs to products and services (cost drivers) based on the numbers of events or transactions involved in the process of providing a product or services. As a result, ABC can support managers to see how to maximize shareholders value and improve corporate performance. (Valuebasedmanagement.net, 2005). Robert Kaplan and Steve Anderson also suggested improved version Time-driven Activity Based Costing to sidestep the difficulties associated with large-scale ABC implementation (Kaplan & Anderson, 2004). The time-driven ABC also facilitates the managers to estimate the resource demand imposed by each transaction, products or customer rather than relying on time consuming and costly employee surveys. The ABC method appeared to be a valuable instrument in many developing countries like India especially in service businesses (Yadav, 2006).