A Study Concerning the Application of the Activity-Based Costing Method for Entities Operating in the Building Sector

Delia David, Daniela Pordea and Luminița Păiușan
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Delia David: "Vasile Goldiș" Western University of Arad
Daniela Pordea: West University of Timișoara
Luminița Păiușan: "Vasile Goldiș" Western University of Arad

CECCAR Business Review, 2020, vol. 1, issue 6, 30-37

Abstract: Cost calculation plays an important part in the decision-making process of management of the economic entities. The aim of this article is to highlight the advantages and disadvantages of the Activity-Based Costing (ABC) calculation method when calculating the unit cost of the works done in the case of construction companies, by using the following research methods: observation, economic analysis, case study and descriptive. The results show that the application of the ABC method for the building sector leads to a more refined cost calculation which provides the management with more detailed information.

Keywords: process cost; cost inductor; direct cost; indirect cost; production cost (search for similar items in EconPapers)
JEL-codes: L74 M11 M41 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ahd:journl:v:1:y:2020:i:6:p:30-37

DOI: 10.37945/cbr.2020.06.04

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