Volume 3, Issue 1, June 2014, Pages 82–87
AKINYOMI Oladele John1
1 Financial Studies' Department, Redeemer's University, Mowe, Ogun State, Nigeria
Original language: English
Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Activity-based costing system represents a major innovation in management accounting. It is one of the most investigated management accounting concepts, especially in the advanced market economies of United States of investigated management accounting concepts, especially in the advanced market economies of United States of America, United Kingdom, amongst others. In the organizational innovative literature usually a positive association is found between size and organizational innovativeness. Larger firms are argued to have more complex and diverse facilities and greater resources available, and to employ more professional and skilled workers, that facilitate the implementation of innovations. The results of prior studies in the area of activity-based costing are somewhat mixed, however. Using a survey research design, this study examines the influence of firm size on activity-based costing implementation in the Nigerian Manufacturing sector. Data were obtained using structured questionnaire administered to 500 Accountants, Cost Accountants, Management Accountants and Financial Managers who are in full-time employment of 24 randomly selected manufacturing firms listed in the Nigerian Stock Exchange. The result of regression analysis revealed significant relationship between the extent of ABC implementation and firm size in the Nigerian manufacturing sector. It is recommended that future studies should seek to investigate the influence of other contextual factors such as top management support, product diversity and level of competition.
Author Keywords: Business Size, Accurate Product Costing, Activity-based Costing, Manufacturing, Nigeria.
AKINYOMI Oladele John1
1 Financial Studies' Department, Redeemer's University, Mowe, Ogun State, Nigeria
Original language: English
Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
Activity-based costing system represents a major innovation in management accounting. It is one of the most investigated management accounting concepts, especially in the advanced market economies of United States of investigated management accounting concepts, especially in the advanced market economies of United States of America, United Kingdom, amongst others. In the organizational innovative literature usually a positive association is found between size and organizational innovativeness. Larger firms are argued to have more complex and diverse facilities and greater resources available, and to employ more professional and skilled workers, that facilitate the implementation of innovations. The results of prior studies in the area of activity-based costing are somewhat mixed, however. Using a survey research design, this study examines the influence of firm size on activity-based costing implementation in the Nigerian Manufacturing sector. Data were obtained using structured questionnaire administered to 500 Accountants, Cost Accountants, Management Accountants and Financial Managers who are in full-time employment of 24 randomly selected manufacturing firms listed in the Nigerian Stock Exchange. The result of regression analysis revealed significant relationship between the extent of ABC implementation and firm size in the Nigerian manufacturing sector. It is recommended that future studies should seek to investigate the influence of other contextual factors such as top management support, product diversity and level of competition.
Author Keywords: Business Size, Accurate Product Costing, Activity-based Costing, Manufacturing, Nigeria.
How to Cite this Article
AKINYOMI Oladele John, “Effects of Firm Size on Activity-based Costing Implementation in Nigerian Manufacturing Sector,” International Journal of Innovation and Scientific Research, vol. 3, no. 1, pp. 82–87, June 2014.
