Characteristics of Activity Based Costing Method

Authors

  • Marius Dinca Transilvania University of Brasov, Romania

Keywords:

Maximizing company value, Costing methods, Activity based costing, Overhead rate, Cost assigning, Activity cost pools, Cost of idle capacity

Abstract

Activity-based costing (ABC) was created to provide more accurate ways of assigning the cost of indirect and support resources to activities, business processes, products, services, and customers. ABC systems recognize that many organizational resources are required not for the physical production of units of product, but to provide a large number of support activities that enable a variety of products and services to be produced for a diverse group of customers. ABC is one of the tools used in the value maximization process.

Author Biography

Marius Dinca, Transilvania University of Brasov, Romania

Dept. of Finance, Accounting and Economic Theory

Published

2007-05-24

Issue

Vol. 13(48) (2006)

Section

ECONOMIC SCIENCES

License

Copyright (c) 2006 Bulletin of the Transilvania University of Brasov. Series V: Economic Sciences

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.