A Study Concerning the Application of the Activity-Based Costing Method for Entities Operating in the Building Sector
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...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
The Body of Expert and Licensed Accountants of Romania
2020-07-01
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| Series: | CECCAR Business Review |
| Subjects: | |
| Online Access: |
https://www.ceccarbusinessreview.ro/a-study-concerning-the-application-of-the-activity-based-costing-method-for-entities-operating-in-the-building-sector-a43d/download-PDF/
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| Summary: | 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. |
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| ISSN: | 2668-8921 2668-8921 |