The Practicability of Activity-Based Costing (ABC) in the Nigerian Retail Banks

The rapid growth and development of information and communication technology leads to a keen competition in the business environment globally. This compels businesses to discover more efficient ways of doing business. The shortcomings of traditional costing method led to the emergence of Activity - Based Costing. This study assesses the practicability of implementing ABC in First Inland Bank Plc of which three branches using non-probability method were selected as the sample size. The study revealed that ABC can be implemented as an effective costing method in the bank, but presently the bank does not practice the system. It was recommended that accounting professional bodies should educate management staff of banks about the importance of the new accounting system.