Page 561 - ISC PROCEEDINGS 21.4

mix and competitive strategy. Given the characteristics of the textile industry in the digital
economy, this model is perfectly suitable for application.
According to Krumwiede and Roth (1997), activity-based costing (ABC) is a
management accounting system that focuses on the measurement of costs, activities,
products, customers, and cost objects. This model allocates costs to cost objects based on
the number of activities used by that cost object. Based on the findings of the research,
the group focuses on applying ABC to measure product manufacturing costs and allocate
costs based on revenue in textile and garment enterprises to improve cost monitoring
efficiency.
According to Baird et al. (2004), the application of ABC is influenced by both internal
and external factors. Among these, the awareness and commitment of senior
management play a decisive role in initiating and maintaining the application of ABC, as
this method requires a change in management thinking as well as the accounting
information system.
In 2005, Robert S. Kaplan introduced the Time-Driven ABC (TDABC) model. This
model is simpler and has lower implementation costs than the traditional ABC model.
Valentina Gecevska and Zoran Anisic (2006) introduced the ABC model using the
EAD matrix. The ABC model using the EAD matrix is an effective and inexpensive model to
apply, very suitable for small and medium-sized enterprises.
Blocher et al. (2008) argue that ABC is an activity-based costing method that
identifies the relationship between costs and cost-generating activities, including the
identification of cost-related activities and resources required for them. The authors note
that, in Vietnamese textile and garment businesses, the application of this model is quite
favorable because these businesses have a clear division of production stages and
allocate resources effectively to each order.
According to Nguyen Thi Minh Duc and other authors (2022), in order to better
meet market demands and enhance competitiveness, textile and garment enterprises
need to use effective management tools. The ability of Vietnamese textile and garment
enterprises to accurately calculate product costs will help them implement effective cost
control measures, thereby increasing profits. Therefore, applying the ABC model in
Vietnamese textile and garment enterprises is necessary to make correct and timely
decisions.
Dr. To Xuan Thanh (2025) analyzed the current state of digital economic
development in Vietnam and proposed a system of policy solutions to create a
comprehensive, sustainable digital economy suitable to the country's practical conditions.
The Vietnamese digital economy is currently undergoing strong digital transformation and
building smart factories in many enterprises, so it is necessary to apply ABC to further
develop the digital economy.
Situational theory emphasizes the role and influence of situational factors on
business operations (Lawrence and Lorsch, 1967). This theory explains the relationship
between influencing factors and outcomes based on an analysis of business behavior and
operations. The authors used this theory to study the influencing factors (management
perspectives, accounting capabilities, IT infrastructure, capital, etc.) on the application of
the ABC model in Vietnamese textile and garment enterprises in digital economy such as
Song Hong Garment, Duc Giang Garment, Viet Tien Garment, Hoa Tho Garment, etc.

560