Impact of Applying the ABC on Improving the Financial Performance in Telecom Companies
The focus of this paper is to explore the impact of Activity-Based Costing (ABC) on telecom company's performance. To achieve this aim, a questionnaire survey was considered, and structured interviews with selecting staffs in management accounting and financial departments were conducted to supplement the survey data. This paper shows that ABC is appropriate for telecom companies as a service sector. The result indicated a positive relationship between applying the ABC and the telecom companies' financial performance, and the needed infrastructure to implement the ABC is available in telecom companies operations, but there are obstacles prevent telecom companies to apply the ABC in their operation to control cost and optimize expenses, which requires more studies.