Activity-Based Costing (ABC) is an accounting technique utilized to allocate costs to products, services, or activities based on their resource consumption. While previous research has largely focused on ABC within corporate environments, this study explores its application within the context of higher education in Thailand. By employing a comprehensive case study approach, this research illustrates the practical advantages of ABC over traditional costing methods and its potential to enhance strategic decision-making through precise cost allocation. The study aims to address issues related to integrated overhead cost systems in service sectors, such as higher education, and other service-oriented organizations or businesses. It advocates for the adoption of ABC, suggesting that it can offer more accurate financial data and facilitate improved decision-making regarding various activities. Additionally, the study provides valuable insights and recommendations for organizations considering similar implementations, based on the challenges encountered during the adoption of ABC. Ultimately, this research contributes to the management accounting literature by offering an ABC model that enhances understanding of its application across diverse contexts.