The Impact of Activity Based Costing in the Reducing Marketing Costs A Field Study at Industrial Companies in Hodeidah City, Yemen

Abstract

The study aimed to identify the impact of applying Activity Based Costing (ABC) system on reducing Marketing Costs (MC) for Yemeni industrial companies in Hodeida. (201) questionnaires were distributed to (13) major companies, included managers, employees of financial, accounting, costs, marketing, sales, and internal auditing. The (SPSS) program was used to data analysis. The result that there is a positive impact of applying ABC on reducing MC, and there is a strong link between (allocating of marketing resources to activities, identifying the causes of activities, and determining the cost pools of activities) and reducing MC, while there is a moderate link between (allocating marketing costs to products) and reducing MC. that companies in Hodeida are aware of the importance of MC, the risks of their rise, and their endeavor to reduce their costs. there is a high positive impact of allocating marketing resources in activities, followed by identifying the causes of marketing activities on reducing MC. also there is no impact of identifying the cost pools of marketing activities and allocating MC for products on reducing MC. recommended to study the reasons for the increase MC, to reduce it, evaluate cost systems, and use ABC for reducing costs