Implementation of activity based costing in yemeni manufacturing companies

Abstract

The study attempts to investigate the status of ABC among Yemeni firms and reveal factors that are related to the adoption using 50 manufacturing companies. Analysis includes descriptive statistics and logistic regression analysis that applied to test the variables relationship in determining the adoption of ABC. The results reveal that 24 percent of Yemeni manufacturing companies are implementing ABC. Moreover, among the variables used in this study, only top management support and non-accounting ownership found to be significant to ABC implementation among the studied sample. Finally, the results indicate that the less complexity in products, no intensity of competition, and lack of internal resources to operate ABC are the common reasons of non-ABC adopter.