A model for integrated implementation of activity-based costing and radio frequency identification technology in manufacturing


Activity-based costing (ABC) systems require extensive data collection and often rely heavily on estimated input data because gathering the necessary information is too costly. With its remarkable capabilities, radio frequency identification (RFID) technology presents an excellent opportunity to improve the ABC cost driver data collection process, especially in manufacturing environments. Typical, individual implementation methods of these systems can involve risks and difficulties. In order to overcome these risks and difficulties to profit from the benefits by leveraging the efforts, this paper focuses on a new managerial strategy and presents an integrated implementation model for manufacturing companies. Along with detailed adoption processes, this study also identifies opportunities where RFID technology can provide ABC systems with extensive data collection and ABC systems can avoid budget overruns of RFID projects. This study shows that in addition to the benefits of integrated implementation steps, opportunities provided by this integration offer the use of RFID technology for improving the ABC cost driver data collection process and the use of ABC systems for costing RFID projects.

Document Type





Activity-based costing (ABC), Integrated implementation, Radio frequency identification (RFID)

Publication Date


Journal Title

International Journal of RF Technologies: Research and Applications