This study aims to develop and test a model for successful adoption of activitybased
costing (ABC). The model has been constructed to explore the relationship
between organisational and technological factors and management evaluation of
overall ABC success and suggest a pathway. Another objective of this study is the
examination of the relationship between ABC and business unit performance. The
study also aims to investigate why some business units have not adopted ABC and
why some business units have discontinued their use of ABC.