Therefore, adopting an activity basis costing (ABC) system will help managers with many of these issues. Although an ABC system primarily identifies the costs of products and services, it is also capable of assigning costs to other resources. Furthermore, the approach identifies indirect costs in more detail and takes other activities into account when charging costs (Apak et al, 2012). Yaya (2011) added that while periodic financial statement reporting is based on the cost of resources provided, an ABC system also includes information on the costs of resources used. The importance of adopting an ABC system at ACME would be during times when interested consumers want vehicles modified for their use. The ABC system can then apply the cost to modifying an original vehicle according to customer specifications. Although an ABC system is beneficial to most manufacturing companies, the system has some advantages and disadvantages that managers should consider (Blocher et al.,