A survey of activity-based costing practices in Bahraini manufacturing firms

الملخص EN

Studies on Activity-Based Costing (ABC) practices in developing countries are limited.

This paper seeks to identify and highlight ABC practices in Bahraini manufacturing firms with respect to extent, motives, difficulties of implementations and reasons as to why some companies have not yet considered ABC.

The study found that a small percentage of Bahraini manufacturing companies are implementing ABC system.

The most important motive for implementing or considering ABC is that it provides insight into cost causation which helps in cost reduction and control.

The provision of more accurate information for pricing decisions and product profitability analysis were also found to be important motives for implementing / considering ABC.

The study also found that the identification of activities, selling ABC concepts to line employees, and lack of clear understanding of ABC on the part of production supervisors were the most important difficulties facing ABC adopters.

Finally, it is found that satisfaction with existing costing system was the most important reason why many Bahraini companies have not yet considered ABC.

The findings of this study are in general consistent with those found by researchers in developed countries.