Activity Based Costing and Corporate Performance of Manufacturing Companies

Abstract

This study examined the relationship between activity-based costing methods on corporate performance of chosen manufacturing enterprises in the Anambra state. Descriptive survey research approach was adopted for the study. The population of this study was derived from an estimate of the total number of employees employed full-time in the chosen manufacturing enterprises in the senatorial districts of Anambra North, Anambra South, and Anambra Central. The research hypotheses that were formulated were tested using Spearman Ranked Order Correlation Coefficient with the aid of Statistical Package for Social Sciences (SPSS) V. 22. The study concludes that activity based costing significantly affects the corporate performance of manufacturing companies in Nigeria According to the study's findings, managers of manufacturing companies should develop a practical approach that can be used to identify organizational activities and assign resources to each activity's cost in accordance with each group's actual consumption of the products and services