SALAM, Mudathir OlanrewajuOSEMENE, Olubunmi FlorenceBAMIGBADE, Dayo2021-05-272021-05-272013-062276-9471https://uilspace.unilorin.edu.ng/handle/20.500.12484/5504This study attempts to establish the level of awareness and adoption of activity-based costing by private firms in Kwara State, Nigeria and also to determine the relationship between organisational performance and activity-based costing. Copies Questionnaire were administered to 45 private firms in Kwara State. Simple regression model and Z-test statistical techniques were employed to analyse the data collected. The results reveal that private firms in Kwara State are aware of activity-based costing method and that there is a relationship between activity-based costing and organisation performance. The study recommends that private firms should be encouraged to adopt activity-based costing beyond purely product costing to a varied range of cost management applications, such as stock valuation, product or service pricing, out decisions, cost reduction, budgeting, new product or service design, customer profitability analysis, performance measurement and cost modelling.enActivity Based CostingFirms performancePrivate firmsKwara StateArticle