Adoption discrepancies Of activity-based costing among the manufacturing Smes In the developed and developing countries: empirical literature review

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Date
2020
Journal Title
Journal ISSN
Volume Title
Publisher
International Journal Publishing House
Abstract
Small and medium enterprises (SMEs) constitute a very valuable component of economic enhancement framework that contributes significantly to countries’ GDP in the world. The financial performance of these enterprises have inarguably become of paramount importance for their survival and growth. Adopting the activity-based costing (ABC) system is among the strategic moves that SMEs are urged to take, in order to reduce their operational costs and boosting the profit at the same time. Nevertheless, the rates of adoption were reported in the previous studies to be low in both the developed and developing countries. This study assessed the effect of individual factors that caused the adoption discrepancies in the two geographical environments. The use of two-sample test statistic on analyzing the mean score data from twenty (20) empirical studies revealed that, there were no significant differences imposed by the system advantage, complexity, compatibility, knowledge, management support, implementation cost and perception on SMEs’ decisions to adopt the ABC system, in both the developed and developing countries.
Description
Full text article. Also available at http://www.researchjournali.com/journal-of-accounting/details.php
Keywords
Activity-based costing, ABC, Adoption discrepancies, Small and Medium Enterprises, SMEs, Developing Countries
Citation
Molela, G., Ismail, I,. (2020). Adoption discrepancies Of activity-based costing among the manufacturing Smes In the developed and developing countries: empirical literature review. Researchjournali's Journal Of Accounting, 8(6), 2- 12
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