This paper contributes to the earlier small business literature by investigating the lagging effects of the use of activity‐based costing (ABC) on small firms' performance. Moreover, we examine if the small firms' past financial performance drives the adoption of ABC and explore whether the extent of ABC use leads, in turn, to improvements in firms' financial performance in the immediate future. In sum, the survey results indicate that small firms with adequate financial resources as well as firms experiencing declining growth tend to use ABC and such use facilitates their subsequent growth and profitability. Small firms seem to benefit from using ABC.
|Peer-reviewed scientific journal||Journal of Small Business Management|
|Number of pages||26|
|Publication status||Published - 2012|
|MoE publication type||A1 Journal article - refereed|
- 512 Business and Management