Exploring the Relationship between Industry Characteristics and the Adoption of an Innovative Cost Accounting Method: A Literature Review on the Greek Context

Abstract

In this research, we assess the applicability of Activity-Based Costing (ABC) methodology across various industries in a developing country context. Through a comprehensive review of articles focusing on ABC implementation within specific sectors in Greece, we employed a multiplication rule in keyword research to identify key patterns. Our findings highlight that industries such as construction, medical, and pharmaceuticals exhibit a higher suitability for ABC, primarily due to the presence of costly equipment in their total assets. ABC proves instrumental in accurately allocating costs, particularly in managing the expenses associated with valuable equipment to prevent both overvaluation and undervaluation. Furthermore, sectors like hotels and education demonstrate significant potential for ABC system implementation. However, in smaller companies where employees engage in diverse tasks, a cautious approach to ABC implementation is crucial, necessitating the use of appropriate information systems.