Cross-Industry Evidence on Activity-Based Costing Implementation and Technological Integration in Emerging Markets

Abstract

This study explores the implementation of Activity-Based Costing (ABC) across diverse industries in emerging markets, focusing on the associated challenges and the extent of technological integration. ABC as a strategic decision-making instrument is more precise in attribution of costs but its use within a developing economy is always compartmented by organizational lethargy, lack of technical skills and constraint of resources. Based on empirical findings on various industries, such as manufacturing, healthcare, services, and logistics, this study cites some of the most important driving and impediment forces that affect the ABC implementation. In particular, the study examines the role of digital technologies such as Enterprise Resource Planning (ERP) systems, cloud-based platforms, and artificial intelligence in supporting ABC deployment. The cross-industry result shows a huge disparity on the implementation outcomes based on sector parameter, organization size and digital preparedness. The results support the fact that cost management strategies should be coordinated with technological abilities to enhance efficiency and competitiveness of operations. The study will help fill the gap of the few studies on ABC conducted in emerging economies with an option to guide managers and policymakers who wish to modernize their cost systems using integrated technology solutions.