A Model To Develop, Assess, and Validate an Activity-Based Costing System for Small Manufacturers

Abstract

This article describes a model to develop, assess, and validate activity-based costing systems for small manufacturers. The model was developed on the basis of an intensive case study conducted at a small printing company. Results show a change to the firm's strategic decision making and an improvement in company profitability as a result of the activity-based costing system.