THE ROLE OF ACTIVITY-BASED COSTING IN BUSINESS OPERATIONS
- Project Research
- 1-5 Chapters
- Quantitative
- Simple Percentage
- Abstract : Available
- Table of Content: Available
- Reference Style: Available
- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
THE ROLE OF ACTIVITY-BASED COSTING IN BUSINESS OPERATIONS
This study explores the role of activity-based costing (ABC) in business operations, focusing on: (1) the effectiveness of ABC in cost management; (2) the impact of ABC on operational efficiency; (3) the challenges in implementing ABC. A survey research design is employed to capture quantitative insights. Using Taro Yamane's formula, a sample size of 280 respondents from Ogun is selected, representing a cross-section of industries. A manufacturing firm is chosen as the case study due to the applicability of ABC in complex cost environments. The survey instrument's reliability coefficient is 0.88. Results indicate that ABC provides more accurate cost information, leading to improved decision-making and resource allocation. However, implementation challenges include high initial costs and resistance to change. The study recommends that businesses adopt ABC for its long-term benefits, provide adequate training to staff, and address implementation barriers through phased adoption and stakeholder engagement.
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