In a more dynamic and competitive manufacturing industry, cost management is a key factor in the success of operations. The research aims to investigate how various cost accounting practices, when applied, impact the efficiency of manufacturing processes, with a particular focus on the comparative performance of Activity-Based Costing (ABC) and the traditional method. Based on a mixed-methods study design, the study involved surveying 50 medium- and large-sized manufacturing companies, conducting interviews with their executives, and reviewing their financial statements. The quantitative analysis was done with SPSS, and it showed that there was a significant negative relationship (r = -0.68) between ABC adoption and cycle times, and the regression results showed that ABC contributes about 48 per cent of the variance in manufacturing efficiency (R 2 = 0.48, p < 0.01). The variance analysis and budgetary control practices in firms showed a 12 to 20 per cent increase in cost efficiency, which further confirms the importance of advanced cost accounting practices in maintaining better performance in firms. The results emphasize that ABC enables more efficient resource allocation, increased visibility in operations, and improved cost management, which is why it proves to be a better strategic instrument in a complex production environment. The insights support the argument that cost accounting systems must be aligned with organizational needs, and it is stated that there may be opportunities for future integration with digital technologies to enhance performance on a sustained basis.
Ruhul Quddus Majumder (2025) studied this question.