COMPARATIVE STUDY ON THE DETERMINATION OF COSTS AND RESULTS UNDER THE TERMS OF USE OF ABC METHOD AND METHOD OF CALCULATION ON ORDERS

Busan Gabriela
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Busan Gabriela: CONSTANTIN BRANCUSI UNIVERSITY OF TARGU JIU

Annals - Economy Series, 2019, vol. 3, 98-103

Abstract: Between the method on orders, as a method of traditional calculation and the ABC method there are a few similarities, but also distinctions. Both methods include in the cost of the product direct costs, while indirect costs are repaired by using a two-step allocation system. Thus, in the traditional system indirect expenditures are distributed on products using no more than two absorption bases (hours-work and/or machine hours), while ABC systems use multiple partition bases (number of operations, number of orders, etc.). As a result, ABC's repartition bases will impose more real production costs, especially where indirect expenditure holds a higher share.

Keywords: ABC method; method of calculating on orders; production cost; results (search for similar items in EconPapers)
Date: 2019
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