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Activity Based Costing (ABC) is a new variant in cost management practices emerged in 1980’s, which caters to the needs of organizations in effective control and monitoring cost and better management of profitability. The success of ABC duly depends on articulation of implementation of ABC and the outcome of Activity Based Cost and Management (ABCM). Though employees experience a positive outcome, it is beyond doubt that they can support the ABC rather resisting the same. The main objective of this paper is to examine the perception of IT companies’ employees’ towards implementation of Activity-Based Costing(ABC). A normative list of benefits concerning the ability of ABC systems to redirect the behavior of individuals was abstract from the interviews opinion and compared to the perceived benefits gathered from interviews with firm employees. This will permit IT Companies and provides relevant information that will enable them to make better decisions with regard to measure the successful implementation of ABC in IT Companies.

Behavioral Aspects of IT Employees towards Problems and Prospects of Activity Based Costing (ABC)