Hypotheses of the study (research): Some of the hypotheses concerning the objectives study can be formulated as following: 1.

The beverage and creamery companies in Brunei to apply the activity based cost system (ABC). 2. The application of the ABC system in the beverage and creamery companies in Brunei improves profitability. 3. The application of the ABC system leads to making rational management decisions (such as the decision of pricing, the decision to dispense a particular product, the decision to expand, the decision to continue or close a product line and the decision to measure productive efficiency). 4. The following obstacles prevent the application of the ABC system in the beverage and creamery company in Brunei: a) Lack of skilled and knowledgeable worker in applying ABC system. b)Lack of qualified accounting and control systems that are eligible to apply the ABC system. c) Lack of appropriate software and technology to apply the ABC system within the facility. d) Management believes that the current system (traditional) is sufficient and there is no need to apply the ABC system. e) Lack of sufficient information for applying the ABC. f) The perceived benefits from ABC system are less than the cost of its application