Implementing Activity-Based Costing Systems in Small Manufacturing Firms: A Field Study

:This article describes the results of a field study involving the implementation of activity-based costing (ABC) in three small manufacturing companies. Similarities and dissimilarities regarding company business, customer distribution, fixed-to-variable cost ratio, and costing system needs are presented. A cost and time efficient methodology for developing and implementing ABC in small manufacturing companies is presented. The ABC companies, implementation methodology, and research findings are discussed. In addition, the potential impacts of ABC implementation at these three companies are examined.