A pinboard by
Patricia Oranefo

Senior Lecturer, Nwafor Orizu College of Education, Nsugbe Anambra State, Nigeria.


The major Objective of the research is to establish the effect of Activity Based costing on Production Performance of manufacturing firms in Nigeria. Ex-post facto research design was adopted. secondly data were collected from a sample of twenty (20) production companies out of twenty one (21) production Industries currently Practicing Activity-Based Costing all quoted with the Nigeria stock exchange for the research. Data on annual time series of total cost, Inventor, revenue, Income and Operating profit were obtained from annual financial report of the sample production companies. A regression statistical analysis and a chow test analysis Indicates that the application of ABC method significantly Influence the level of Inventory management in production Industries. Also, the study finds out that the application of ABC system has a great effect on revenue generation of production Industry. Finally, it was discovered that profit of Production industries Influenced by the application of ABC system method of costing. The findings of the study, indicates that cost of products remains the most important variables in the determination of production firm's profits. The findings implies that production Industries should make effort to understand cost drives in their production firms with view to accurately costing their products. Based on the results of the analysis, it was recommended that production firms should have deep insight into the make-up of their product's cost and the activities involved in the process. Also, those production technologies and more than one product line should embrace ABC method.