AN APPRAISAL OF ACTIVITY-BASED COSTING FOR SUSTAINABILITY AND COST CONTROL IN NIGERIA'S MANUFACTURING SECTOR
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Abstract: AN APPRAISAL OF ACTIVITY-BASED COSTING FOR SUSTAINABILITY AND COST CONTROL IN NIGERIA'S MANUFACTURING SECTOR
This study evaluates the implementation and efficacy of Activity-Based Costing (ABC) for enhancing sustainability and cost control within Nigeria's manufacturing sector. The objectives are to assess the application of ABC in cost management, evaluate its role in sustainability efforts, and identify the challenges faced during implementation. A survey design was utilized, gathering data from 250 financial managers and accountants, derived using Taro Yamane's formula. A case study of a leading manufacturing firm in Lagos provided detailed insights. The reliability coefficient score of the survey instrument was 0.88. Findings reveal that ABC significantly improves cost control by providing detailed cost information and facilitating more accurate product costing. Additionally, ABC contributes to sustainability by identifying and reducing non-value-added activities. However, challenges such as high implementation costs and resistance to change were noted. Recommendations include providing more training for accountants, simplifying ABC implementation processes, and integrating sustainability metrics within ABC frameworks.
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