THE IMPACT OF COSTING TECHNIQUES FOR ACTIVITY-BASED MANAGEMENT IN THE PHARMACEUTICAL INDUSTRY
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Abstract: THE IMPACT OF COSTING TECHNIQUES FOR ACTIVITY-BASED MANAGEMENT IN THE PHARMACEUTICAL INDUSTRY
This study examines the impact of costing techniques on activity-based management (ABM) in the pharmaceutical industry in Lagos. The objectives are to evaluate the effectiveness of various costing techniques, assess their impact on financial performance, and identify the challenges faced. A survey design was employed, gathering data from 250 financial managers and cost accountants, derived using Taro Yamane's formula. A case study of a leading pharmaceutical company in Lagos provided comprehensive insights. The reliability coefficient score was 0.88. Findings indicate that accurate costing techniques, such as activity-based costing, significantly enhance ABM by providing detailed cost information and facilitating better decision-making. However, challenges such as high implementation costs and data collection difficulties were noted. Recommendations include providing more training on costing techniques, simplifying data collection processes, and integrating costing techniques with overall management practices to improve organizational performance.
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