The study of the possibility of using activity-based costing system (ABC) (Case Study: General Directorate of Roads and Urban Development of East Azerbaijan Province)

Abstract

Activity-based costing system (ABC) is one of the new systems of cleared cost of goods and services which provides a better and more accurate management information to users to assist in appropriate decision making. This study is a scientific and applied research and its methodology is descriptive-causal-comparative. The population of the research are managers and staff of the General Directorate of Urban Development of East Azerbaijan province. Using census, all managers and staff of the financial sector in province and cities that their number is 150, have been selected as sample. In order to collect information and data required to test the hypotheses, five-item Likert-type questionnaire was used. Its validity was confirmed by a number of professors of management and Cronbach's alpha was used to confirm the validity of the questionnaire, its amount was 0.89 that indicates its high reliability. In order to analyze the data, the Kolmogorov-Smirnov (to test for normality), and to confirm the hypotheses, t test and Wilcoxon tests were used. The results of research show that there are significant differences between the information of cleared-cost based on activity-based costing system with the traditional system in the General Directorate of Roads and Urban Development of East Azerbaijan Province