Survey of activity-based costing system implementation in Nigeria manufacturing sector

The relevance of the traditional volume-based cost allocation practices in today's manufacturing environment has been questioned and strongly criticized. In other to overcome the deficiencies of the traditional volume-based costing system and to provide more accurate information for management planning and control, activity-based costing was proposed. However, till date, there is virtually little or no study that has reported the extent of activity-based costing implementation in the Nigerian manufacturing sector. Thus, this study sets out to ascertain the extent of activity-based costing implementation in the Nigerian manufacturing sector. The population of the study comprises the 86 manufacturing companies quoted in the Nigerian Stock Exchange Market. Using survey design, data were obtained 24 randomly selected manufacturing companies through the administration of structured questionnaire. Descriptive statistics was employed in the analysis. The result of the analysis revealed that there is 74.2% activity-based costing system implementation rate in Nigeria manufacturing sector. It is recommended for future researchers to investigate the factors that facilitate the implementation of activity-based costing system.