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Accounting — 2025, Undergraduate
This study investigated the effect of activity-based costing (ABC) on product cost accuracy in selected bottling companies in Nigeria. A mixed-methods approach combining questionnaire administration and interviews with cost accountants was adopted. Data were analysed using descriptive statistics and thematic analysis. The findings revealed that ABC improved the traceability of overheads to products and reduced cross-subsidisation of product costs, leading to more accurate cost information and better pricing and profitability analysis. Implementation was, however, constrained by data demands and staff expertise. The study recommends phased adoption of ABC and investment in data systems and staff training.
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