INTEGRATING ENVIRONMENTAL COST ACCOUNTING USING ACTIVITY BASED COSTING SYSTEMS: NIGERIAN MARCH TO SUSTAINABLE COMPETITIVENESS IN THE GLOBAL ECONOMY.

Egbunike; Patrick Amaechi; John Akamelu Chitom Racheal

Volume : V, Issue : II, February - 2015

INTEGRATING ENVIRONMENTAL COST ACCOUNTING USING ACTIVITY BASED COSTING SYSTEMS: NIGERIAN MARCH TO SUSTAINABLE COMPETITIVENESS IN THE GLOBAL ECONOMY.

Egbunike, Patrick Amaechi, John Akamelu Chitom Racheal

Abstract :

Changes in business environment triggered by global competition and Technological advancement has necessitated demands for relevant cost data and performance in organization’s activities, processes, products, services and customers. The paper therefore aims at integrating environmental cost accounting using activity based costing systems: Nigerian march to sustainable competitiveness in the global economy. Data was collected from stakeholders’ across–industrial lines in Aba, Enugu, Nnewi and Onitsha in the south east of Nigeria. These cities are fast developing industrial hub in Nigeria. Data collected were analyzed using multiple linear regression. The study revealed an extreme low practice of Activity–based costing (ABC) among corporations. Secondly, it also showed that non–application ABC is the cause of our poor product costing comparable to international standard. Consequent upon these, the paper majorly recommended that manufacturing firms should properly integrate environmental costing using ABC to fully capture all the needed cost in their product pricing which would afford them global competitiveness.