This paper presents the results of a Web-based survey that gathered evidence about the current status of activity-based costing adoption and implementation. Activity-based costing was introduced about 15 years ago and implemented initially by large manufacturing companies. Our results indicate that the rates of adopting activity-based costing are now similar for service firms and manufacturing firms. Larger firms are more likely to have adopted activity-based costing than smaller firms, possibly because activity-based costing is more beneficial in larger firms that have a diverse mix of products or services. Larger firms are also more likely to have specialized staff familiar with this method.

Activity-Based Costing, Costing System, Traditional Cost Accounting