AVAILABILITY OF THE FUNDAMENTAL FACTORS FOR ADOPTION OF ACTIVITY-BASED COSTING/ MANAGEMENT (ABC/M) AT SAUDI UNIVERSITIES

Abstract

Nowadays, the application of ABC/M is becoming more important for institutions in order to have a bright future. Hence, the aim of this study is to explore the main factors for adoption of activity-based costing/management (ABC/M) system. The data were collected from wellestablished two public universities in the Kingdom of Saudi Arabia (KSA). The results revealed that a significant positive effect of fundamental factors (i.e. top management support, high decision usefulness cost information, services diversity and complexity, adequate resources, cost structure, information technology, and competition) for enhancing the ABC/M adoption in public universities in KSA. Therefore, the authors recommended that public university leaders in KSA can proceed in adoption of ABC/M decision because the KSA educational institutions have facilitated environment to embrace that system. Finally, the limitations and future avenues have discussed