An Analysis of the Factors Influencing the Adoption of Activity Based Costing (ABC) in the Financial Sector in Jamaica

Phillip C. James
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Phillip C. James: College of Business and Management, School of Business Administration, University of Technology, Jamaica., 237 Old Hope Road,Kingston 6, Jamaica

International Journal of Business and Social Research, 2013, vol. 3, issue 7, 8-18

Abstract: Financial institutions are increasingly operating in a highly competitively environment and therefore cost management has become an imperative. This paper investigates the factors influencing the adoption of activity-based costing (ABC) methodology within the financial sector in Jamaica. Quantitative analysis was done using the generalized linear logistic regression model. The results show that there are three main factors that are statistically significant in the decision to implement an ABC system, these are: companies perception of the ability of ABC to assist in cost control, the proportion of overhead to total cost and finally, the action of competitors, that is, whether a competitor adopts the ABC methodology

Keywords: activity based costing; logistic regression; financial sector; cost management (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:mir:mirbus:v:3:y:2013:i:7:p:8-18

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