Applications of Activity-Based Costing in Bangladesh

The study deals with the problem of Activity-Based Costing (ABC) utilization in conditions of the Bangladesh. Shortcoming of the traditional costing methods and advantages of ActivityBased Costing systems are explained in the opening part of this article. Major part of article is dedicated to describe the advantages of utilization of ABC system in practice. This article describes the approach of Bangladeshi companies to the problems of cost management in today’s business environment and seeks the obstacles in adoption of modern costing systems. Finally our study focused on the level of practice of the cost management systems in the Bangladeshi companies. We search the answer for the question: “How do Bangladeshi companies deal with the different types and levels of costing methods application and systems?” At last, we define the obstacles of applying modern costing methods and the possible ways of the utilization and implementation of these systems.