Based on the literature review conducted in this study, the implementation of Activity-Based Costing, ABC, in the business sector can increase the profitability and competitiveness of companies. This article examines the implementation of activity-based costing, ABC, in the SME sector in a developing country. The consequences of ABC on the evolution of management accounting and its. Janek Ratnatunga. A significant portion of the current management accounting literature compares the benefits and importance of activity-based cost accounting, ABC, systems with more traditional cost accounting systems. This article challenges this tendency to create such a stark contrast, placing ABC systems within broader cost accounting. It appears from the review and analysis of academic literature and professional sources that successful integration between ERP and ABC minimizes operating costs, improves competitiveness, improves business management, thanks to its ability to provide more accurate cost information for a strategic decision; The principles and concepts that form the basis of the activities of a costing system. The activity-based costing system, ABC, was created to allocate indirect costs to products with a higher degree of precision for measurement and various management decisions regarding pricing and access to new national and global markets.