Abstract This study measured financial and operating managers' satisfaction with activity-based costing (ABC) at a variety of manufacturing firms. It also evaluated the use of ABC information to support decision making. The findings are based on the results of ten field visits and 50 telephone interviews of 25 manufacturing firms that use ABC. The interviewees reported significant improvements in their cost management systems following the implementation of ABC. Evidence is also provided about how managers actually used the ABC information to support strategic and operating decisions.
Dan Swenson (Fri,) studied this question.