The Effect of Activity-Based Costing on the Performance of Supermarkets in Kisii Town, Kisii County

Performance in a business is always the desired end in any business but it’s an area crowded by many challenges. To sustain competitiveness in the contemporary market, firms have been pushed to reduce costs, enhance income, and uphold the highest standards of product and service quality for their clients. However, numerous supermarkets have encountered an ongoing challenge in inventory management. The objectives was: To establish the effect of activity-based costing inventory on the performance of supermarkets in Kisii town, Kisii County; This study was grounded on the theoretical frameworks of resource-based view theory, lean theory, and the economic order quantity model. The research employed a descriptive survey research design. The research utilized a stratified random sampling to pick a sample size of 105 individuals from a target population of 384 respondents. Primary data was acquired through the use of closed-ended questionnaires. The researcher employed principal component analysis (PCA) test to ensure construct validity while experts and supervisor will ensure content validity Additionally, Cronbach's Alpha was utilized to evaluate the internal reliability of the data on a threshold of >0.7. The data analyzed data was visually presented through the use of tables and figures. The collected data was analyzed using descriptive statistics, including minimum, maximum, mean, and standard deviation measures. Inferential statistics techniques, such as simple and multiple regression analysis and correlation analysis, were employed. The researcher intended to employ content validity and correlation coefficient to ensure validity.