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ese consultancy firms. This was because ABC acted as a catalyst for decision making that is affecting the profitability level and was able to reveal sources of the loss that were responsible for the decline of the profitability level (Liu and Pan, 2007). The method helped the consultancy firms to develop new focus on the profitable markets and customers, design products to remove cost, and eliminate the non-value added activities.

Activity Based Costing is being used by a number of companies in different sectors of the economy. For example, in the healthcare industry activity based costing has provided an easier way of dealing issues regarding the provision of health services and products to its citizens. Most of the hospitals like Al Mowasat Hospital, Armed Force Hospital and King Faisal Hospital have benefited so much from the technique of activity based cost management (ABM) systems (Aird, 1988). This has enabled the hospitals to improve their quality and efficiency in healthcare service provision with consideration of the cost controls and resource management.

Another sector that has expressed much utilization of the ABC method in Saudi Arabia is the Oil Industry. The oil industry is faced with a high level of competition associated with higher costs. Therefore to be able to survive in this market, a firm needs to manage cost, quality, and product or service through an effective cost management method. Saudi Arabian Oil Company is one of the of the petroleum companies that has a vast petroleum reserves that is unmatched in any part of the world. For the company to survive in the competitive oil market it uses a number of systems for cost control such as, design for manufacturing, quality management and most importantly activity based costing as one of its core perspectives (Galbraith et al, 1998).

Activity Based Costing has provided a new approach in solving cost management problems in many industries in Germany. For example, Market-Trading is a German enterprise that sells mainly high quality and highly furnished products to the retailers, whole sellers and even retailers. This company has implemented the model of Activity Based Costing that tries to allocate the costs to the related final products before releasing them off to the market. Through this method there has been an increased competitive advantage gained by the firm in the market of competition. This is the sector of business trading dealing with provision of goods and services. In the construction industry, there has been experienced more utilization of the ABC method by many firms. For example, the EU Solar Systems Limited brings together a unique team of fields of construction, sales, information technology and engineering. Their main products include distribution of solar panels and related solar products. Due to the high level of costs incurred in this production process, the EU solar company manages its costs by using a well defined cost accounting system basically the ABC model (Polejewski, 1990, p.4).

There are a number of issues managers in an emerging economy face when trying to implement the ABC method in a firm. One of the major issues that surround the ABC method is the difficulty of implementation. What proves difficult is the issue of allocation of property. This is because it requires a lot of effort utility and that the processes are adequately mapped throughout the organization. In the emerging economie本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。