There is increasing evidence that external and internal pressures are being placed uponrncompanies to acknowledge, characterize and analyses environmental issues, impacts andrncosts. It has been becoming crucial that companies will increasingly be faced withrnresponsibilities extending outside the factory gate to point of sale and beyond. Companiesrnwill need to adopt a life cycle perspective into the decision-making framework, to supportrnmanagements' decisions regarding the environmental impacts and costs of activities andrnproducts.rnThe manufacturing and process sector has suffered from poor management systems for arnlong time. In process industries, the need for better cost management systems arises fromrnefficiency problems and lack of resources. With activity-based costing, the processes and therncosts of activities become more transparent than earlier.rnABC has highlighted that true understanding of what it costs to provide products/services isrnat the same time a tool for better management. It helps to better understand and serve asrnguides in any business process improvement initiatives, and to subject resources to itsrnefficient usage. In a nutshell, it helps to make more effective business process improvementrnat more transparent cost.rnThis study is an illustration to point out required changes that could be made during thernactivity-based costing process in Zemilli paint factory. It shows the benefits and advantagesrnthat have come true because of the ABC-process and discuss the problems connected to thisrnprocess. The ABC-process consists of two phases. The phases and their outcomes arerndescribed in chapter four preceded by the basic principle of ABC in chapter three of thisrnstudy.rnThe first chapter of the thesis dedicated to introduction, background, the importance,rnobjective and the general outline of the paper. The second chapter of the thesis gives thernexisting condition of process industries in Ethiopia considering specific attention to Zemillirnpaint factory. While the third chapter of the thesis is fully dedicated to literature survey andrnComputerized Activity Based Costing System for process industries, A Case Study On Zemilli Paint Factory.rn______________________________________________________________________________________rn___________________________________________________________________________rnAddis Ababa University, School of Graduate Studies, Department of Mechanical Engineeringrnixrnfollowed by chapter four which gives emphasis to problem formulation and the ActivityrnBased Costing model developed to the factory.rnThe thesis is wind up by including chapter five with outline information to the developedrnvisual basic programming using ABC principles. Finally a conclusion and recommendationrnis drawn out from the executions of the study in chapter six.rnThe most concrete result of the whole process is a database with visual basic programmingrnworking on ABC-model. The model can be used as a tool of daily management. It has beenrnused to find out the costs of each activity and operation. This has enhanced the costrnawareness of the unit. The model can also be used for simulation. It can be used to find outrnthe profitability of the operation of the factory.