IMPLEMENTATION OF THE ABC METHOD FOR COST CALCULATION
IMPLEMENTATION OF THE ABC METHOD FOR COST CALCULATION

Summary/Abstract: The Activity-Based Costing (ABC) method represents an important innovation in accounting and cost management. It offers a detailed and precise approach to allocating indirect costs based on the activities that generate them. Unlike traditional cost allocation methods, which can often be arbitrary and imprecise, the ABC method allows for a clearer understanding of how various activities and products use resources. This provides a more accurate picture of real costs and the profitability of each product or service, facilitating better-informed and strategic decisionmaking. This paper aims to demonstrate how implementing the ABC method can bring substantial benefits in the efficient management of costs and alignment with accounting regulations, therefore contributing to better economic performance and increased organization competitiveness in the market

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