Impact of activity based costing on the financial performance of manufacturing firms in Zimbabwe. Bukama Craft Brewery Private Limited Case Study · Electronic Theses and Dissertations

Author

Mhlanga, Gabriella

Title

Impact of activity based costing on the financial performance of manufacturing firms in Zimbabwe. Bukama Craft Brewery Private Limited Case Study

Abstract

This study looks at how manufacturing organizations' financial performance is impacted by the Activity Based Costing method (ABC). The research’s objective was determining Bukama Craft Brewery Private Limited Company's financial performance could be improved by using contemporary costing approaches. The research philosophy of pragmatism was applied to fully tackle the primary motivator for the researcher to gain a sense of the situation in order to better grasp the nature of the problem, participant views, and experiences. The study employed questionnaires as methods of data collection. Through the use of a questionnaire, it was determined that while some of the procedures and elements often linked to a successful ABC implementation were being followed, difficulties were still being encountered as a result of inadequate training and outdated technology. The research design is the general organization of a research study that asks questions regarding the types of evidence that are collected, where they are collected, and how they are analyzed effectively answering the study inquiries.
The study used deductive study approach, which provides more informed decision about the research design. Staff members from several departments of Bukama Craft Brewery Private Limited Company comprised the research sample of thirty-one participants. Expert sampling, a non-probability cluster sampling and simple random sampling strategy, was employed to obtain information from interviewees who have superior expertise in the studied area. Pie charts, tables, and Pearson's regression were employed in the data's analysis and display. The investigation found that manufacturing firms should adopt the ABC system, but first they should evaluate the requirements needed for a full ABC implementation, including technology, personnel training, and backing from upper management. Regression analysis revealed a moderate positive correlation between ABC and financial performance.

Date

JUNE 2024

Publisher

BUSE

Keywords

Costing, Financial perfomance, Bukama Craft Brewery

Supervisor

Mr. N. Hove