By: Onuoha Perpetua Ijeoma, Edigbo Judith Nneoma
Pages: 454–474, Volume: 3, Number: 1
Published by: AEFUNAI Journal of Economics, Finance and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike, 2/1/2026, 2026
ISSN (Electronic): 2536-6742
DOI:
Adoption of Activity-Based Costing (ABC) and its Impact on Cost Reduction in Service Industries
Abstract:
This paper investigates the use of Activity-Based Costing (ABC) and its impact on cost reduction within the Nigerian telecommunication sector, specifically focusing on MTN, Airtel, Globacom, and 9mobile. Using a descriptive research design with primary data, the study finds that while awareness of ABC is growing, it is not yet fully adopted. Where implemented, ABC improves cost accuracy, identifies non-value-added activities, and reduces general costs, though barriers like high implementation costs and managerial resistance remain.
Keywords: Activity-based costing (ABC), Strategic cost management, Profitability, Resource allocation
How to Cite
Onuoha, P. I., & Edigbo, J. N. (2026). Adoption of Activity-Based Costing (ABC) and its Impact on Cost Reduction in Service Industries. A Study of the Nigerian Telecommunication Sector. AEFUNAI Journal of Economics, Finance and Development Studies (AEFUNAI-JEFDS), Vol. 3(1), 454–474.
Creative Commons Attribution 4.0 International License (CC BY 4.0)
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