{"id":3598,"date":"2024-04-06T08:00:37","date_gmt":"2024-04-06T08:00:37","guid":{"rendered":"https:\/\/ejfms.deqepub.org\/?post_type=journal_article&amp;p=3598"},"modified":"2024-04-06T08:00:37","modified_gmt":"2024-04-06T08:00:37","slug":"activity-based-costing-abc-implementation-challenges-and-success-factors","status":"publish","type":"journal_article","link":"https:\/\/deqepub.org\/ejfms\/journal_article\/activity-based-costing-abc-implementation-challenges-and-success-factors\/","title":{"rendered":"Activity-Based Costing (ABC) Implementation: Challenges and Success Factors"},"content":{"rendered":"\n<p><a><strong>Udeh, P. N.<sup>1<\/sup>, Eze, R. C.<sup>2<\/sup> &amp; Enujioke, I. E.<sup>3<\/sup><\/strong><\/a><br><a><em><sup>12<\/sup><\/em><\/a><em>Department of Accounting, Federal Polytechnic, Ohodo, Enugu, Nigeria<\/em><br><em><sup>3<\/sup>Department of Management, University of Nigeria, Enugu Campus, Nigeria<\/em><\/p>\n\n\n\n<p><strong>Abstract<\/strong><br><em>Activity-Based Costing (ABC) has emerged as a revolutionary approach to cost allocation and management in contemporary organizations. This study explores the challenges and success factors inherent in ABC implementation, synthesizing empirical evidence, case studies, and scholarly insights to offer comprehensive guidance to practitioners and scholars. Challenges in ABC implementation encompass cultural resistance, data complexity, managerial support inadequacies, integration hurdles, training needs, and resource constraints. Conversely, success factors include robust leadership, clear communication, interdisciplinary collaboration, adequate training, pilot testing, and continuous monitoring. Drawing from empirical evidence, the study emphasizes the pivotal role of leadership endorsement, cross-functional collaboration, and technical infrastructure in fostering successful ABC implementation. Furthermore, implications for practice underscore the importance of tailored strategies for change management, data handling, and technology investment, while research implications highlight the need for further exploration into cultural dynamics, integration methodologies, and longitudinal impact assessments. Overall, this study contributes to advancing knowledge in managerial accounting and cost management, offering valuable insights for practitioners and researchers embarking on ABC implementation initiatives.<\/em><br><br><strong>Keywords<\/strong><em>: Activity-Based Costing (ABC); ABC Implementation; Success Factors<\/em><\/p>\n\n\n\n<div data-wp-interactive=\"core\/file\" class=\"wp-block-file\"><object data-wp-bind--hidden=\"!state.hasPdfPreview\" hidden class=\"wp-block-file__embed\" data=\"https:\/\/ejfms.deqepub.org\/wp-content\/uploads\/2024\/04\/EJFMS-81-45-52.pdf\" type=\"application\/pdf\" style=\"width:100%;height:600px\" aria-label=\"Embed of EJFMS-81-45-52.\"><\/object><a id=\"wp-block-file--media-3d404c34-87a0-465f-8971-c7d5721ac543\" href=\"https:\/\/ejfms.deqepub.org\/wp-content\/uploads\/2024\/04\/EJFMS-81-45-52.pdf\">EJFMS-81-45-52<\/a><a href=\"https:\/\/ejfms.deqepub.org\/wp-content\/uploads\/2024\/04\/EJFMS-81-45-52.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-3d404c34-87a0-465f-8971-c7d5721ac543\">Download<\/a><\/div>\n","protected":false},"author":1,"template":"","journal_article_cats":[177],"class_list":["post-3598","journal_article","type-journal_article","status-publish","hentry","journal_article_cat-vol-8-no-1"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.2 (Yoast SEO v26.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Activity-Based Costing (ABC) Implementation: Challenges and Success Factors - European Journal of Finance and Management Sciences<\/title>\n<meta name=\"description\" content=\"Activity-Based Costing (ABC) has emerged as a revolutionary approach to cost allocation and management in contemporary organizations. This study explores the challenges and success factors inherent in ABC implementation, synthesizing empirical evidence, case studies, and scholarly insights to offer comprehensive guidance to practitioners and scholars. Challenges in ABC implementation encompass cultural resistance, data complexity, managerial support inadequacies, integration hurdles, training needs, and resource constraints. Conversely, success factors include robust leadership, clear communication, interdisciplinary collaboration, adequate training, pilot testing, and continuous monitoring. Drawing from empirical evidence, the study emphasizes the pivotal role of leadership endorsement, cross-functional collaboration, and technical infrastructure in fostering successful ABC implementation. Furthermore, implications for practice underscore the importance of tailored strategies for change management, data handling, and technology investment, while research implications highlight the need for further exploration into cultural dynamics, integration methodologies, and longitudinal impact assessments. Overall, this study contributes to advancing knowledge in managerial accounting and cost management, offering valuable insights for practitioners and researchers embarking on ABC implementation initiatives.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/deqepub.org\/ejfms\/journal_article\/activity-based-costing-abc-implementation-challenges-and-success-factors\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Activity-Based Costing (ABC) Implementation: Challenges and Success Factors\" \/>\n<meta property=\"og:description\" content=\"Activity-Based Costing (ABC) has emerged as a revolutionary approach to cost allocation and management in contemporary organizations. This study explores the challenges and success factors inherent in ABC implementation, synthesizing empirical evidence, case studies, and scholarly insights to offer comprehensive guidance to practitioners and scholars. Challenges in ABC implementation encompass cultural resistance, data complexity, managerial support inadequacies, integration hurdles, training needs, and resource constraints. Conversely, success factors include robust leadership, clear communication, interdisciplinary collaboration, adequate training, pilot testing, and continuous monitoring. Drawing from empirical evidence, the study emphasizes the pivotal role of leadership endorsement, cross-functional collaboration, and technical infrastructure in fostering successful ABC implementation. Furthermore, implications for practice underscore the importance of tailored strategies for change management, data handling, and technology investment, while research implications highlight the need for further exploration into cultural dynamics, integration methodologies, and longitudinal impact assessments. Overall, this study contributes to advancing knowledge in managerial accounting and cost management, offering valuable insights for practitioners and researchers embarking on ABC implementation initiatives.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/deqepub.org\/ejfms\/journal_article\/activity-based-costing-abc-implementation-challenges-and-success-factors\/\" \/>\n<meta property=\"og:site_name\" content=\"European Journal of Finance and Management Sciences\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/deqepub.org\/ejfms\/journal_article\/activity-based-costing-abc-implementation-challenges-and-success-factors\/\",\"url\":\"https:\/\/deqepub.org\/ejfms\/journal_article\/activity-based-costing-abc-implementation-challenges-and-success-factors\/\",\"name\":\"Activity-Based Costing (ABC) Implementation: Challenges and Success Factors - European Journal of Finance and Management Sciences\",\"isPartOf\":{\"@id\":\"https:\/\/deqepub.org\/ejfms\/#website\"},\"datePublished\":\"2024-04-06T08:00:37+00:00\",\"description\":\"Activity-Based Costing (ABC) has emerged as a revolutionary approach to cost allocation and management in contemporary organizations. This study explores the challenges and success factors inherent in ABC implementation, synthesizing empirical evidence, case studies, and scholarly insights to offer comprehensive guidance to practitioners and scholars. Challenges in ABC implementation encompass cultural resistance, data complexity, managerial support inadequacies, integration hurdles, training needs, and resource constraints. Conversely, success factors include robust leadership, clear communication, interdisciplinary collaboration, adequate training, pilot testing, and continuous monitoring. Drawing from empirical evidence, the study emphasizes the pivotal role of leadership endorsement, cross-functional collaboration, and technical infrastructure in fostering successful ABC implementation. Furthermore, implications for practice underscore the importance of tailored strategies for change management, data handling, and technology investment, while research implications highlight the need for further exploration into cultural dynamics, integration methodologies, and longitudinal impact assessments. 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