The sector of industry in Yemen has a crucial contribution to national GDP. In order to improve the efficiency and competitiveness of the manufacturing by enabling them to make decisions based on a better understanding of their cost structure, they need to adopt Activity-Based Costing (ABC). The present paper aims at reviewing the research studies on the uses of ABC in the manufacturing units in Yemen. The review found that the majority of commercial banks in Yemen do not apply ABC. The banks which use ABC find that ABC helped to raise the bank's efficiency in resources management and its uses. The majority of the manufacturing units still use the Traditional Costing Systems and only 24% of the Yemeni industrial companies, mostly large companies apply ABC.