Global Advanced Research Journal of Management and Business Studies (GARJMBS) ISSN: 2315-5086 June 2014 Vol. 3(6), pp 267-273

Copyright © 2014 Global Advanced Research Journals   

 

Original Research Articles

Applicability of Activity Based Costing by Manufacturing Firms in Zaria Local Government Area of Kaduna State, Nigeria 

Kabiru Isa Dandago1, and  EL-Maude, Jibreel Gambo2 

1Visiting Professor, School of Accountancy, College of Business, Universiti Utara Malaysia, 06010 UUM Sintok, Kedah Darul Aman, Malaysia Kabiru@uum.edu.my,  kidandago@gmail.com,  +60143032297

2Department of Accountancy, Modibo Adama University of Technology, Yola, Adamawa State, Nigeria ielmaude@gmail.com, +2347035971890, +2347055711070 

Accepted 10 June 2014

 

Abstract

The thrust of this study is to examine the level of application of Activity Based Costing (ABC) in the manufacturing companies in Zaria local Government Area of Kaduna state, Nigeria. As business environment is fast changing, accountants, managers, entrepreneurs and other stakeholders are to invent new ideas and strategies capable of drastically eliminating unnecessary expenses which invariably enhance the performance of their firms, increase their profitability and ensure their going concern status. Five manufacturing companies were conveniently sampled and copies of questionnaire were administered to the twenty five (25) randomly selected staff of these companies. Correlation co-efficient and T-test were used in testing the formulated hypothesis. The study reveals that none of the companies was applying ABC in apportioning its overhead cost to cost centers and cost units; they go by the traditional method of costing which was still obtainable in the sampled companies and as a result most of them are at the verge of collapsing, because they are not operating at full capacity. The study recommends that there is the need for general awareness campaign on the benefits of ABC and how it is being practically applied in advanced countries with a view to resuscitating and enhancing the financial performance of ailing companies in the country.                                                                              

Keywords: Activity Based Costing, Traditional Costing, Cost Drivers, Indirect Costs, Manufacturing Firms, Local Government Area

Related Articles


Original Research Articles
Esiobu, Nnaemaka Success; Onubuogu, Chinedu Gilbert; Njoku, Sylvarlene Munachim and Nwachukwu, Blessing Chidinma
Sustainability and Determinate of Farmers’ Mitigation Strategies to Greenhouse Gases Emission: a case in Rice Agric-Food System of Nigeria
Glo. Adv. Res. J. Manage. Bus. Stud. June 2020 Vol: 9(6): - [Abstract] [Full Text - PDF] (0 KB)
Chinwe A Muodumogu and Catherine Oyiza Unwaha
Improving students’ achievement in essay writing: What will be the impact of mini-lesson strategy?
Glo. Adv. Res. J. Manage. Bus. Stud. December 2013 Vol: 2(6): - [Abstract] [Full Text - PDF] (204 KB)
Chikezie NP, Chikaire J, Osuagwu CO, Ihenacho RA, Ejiogu-Okereke N, Oguegbuchulam MN and Obi KU
Factors Constraining Rural Youths Involvement in Cassava Production in Onu – Imo Local Government Area of Imo State, Nigeria
Glo. Adv. Res. J. Manage. Bus. Stud. October 2012 Vol: 1(8): - [Abstract] [Full Text - PDF] (166 KB)
Oso, A.A. and Ayodele, O.J
Farm Practices Adopted for Perennial Productivity of Plantain Production Systems in Ekiti and Ondo States, Nigeria
Glo. Adv. Res. J. Manage. Bus. Stud. June 2014 Vol: 3(6): - [Abstract] [Full Text - PDF] (152 KB)
Seher Dirican
Determination of Water Quality According to the Inorganic Parameters in Water of Özen Spring, Sivas, Turkey
Glo. Adv. Res. J. Manage. Bus. Stud. March 2020 Vol: 9(3): - [Abstract] [Full Text - PDF] (137 KB)
Gwary, M.M., Nuhu, H.S., Burabe, B.I. and Toro, N.A.
Analysis of Determining Factors to Women’s Participation in Poultry Production in Toro Local Government Area of Bauchi State, Nigeria
Glo. Adv. Res. J. Manage. Bus. Stud. September 2015 Vol: 4(9): - [Abstract] [Full Text - PDF] (130 KB)

Current Issue

Viewing Options

View Full Article - PDF
Download Full Article - PDF

Search for Articles

Kabiru Isa D on Google Scholar
Kabiru Isa D on Pubmed
ago on Google Scholar
ago on Pubmed
on Google Scholar
on Pubmed
EL Maude on Google Scholar
EL Maude on Pubmed
Jibreel Gambo on Google Scholar
Jibreel Gambo on Pubmed

Statistics

Viewed 2620
Printed 725
Downloaded 3689
Powered By iPortal Works