Application of the Activity Based Costing System to the Wood Industry
Traditional costing methods assign indirect costs evenly, according to resource consumption bya product, while this consumption actually takes place in an uneven manner. To avoid such errors,entities seek to ensure best possible appraisal of uneven resource consumption, and the ABCmethod is one way...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Ovidius University Press
2016-01-01
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| Series: | Ovidius University Annals: Economic Sciences Series |
| Subjects: | |
| Online Access: | http://stec.univ-ovidius.ro/html/anale/ENG/2016/2016-I-full/Section-V/34.varteiu_daniel.pdf |
| _version_ | 1818309564960866304 |
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| author | Daniel Petru Vârteiu Cristian Florin Bota |
| author_facet | Daniel Petru Vârteiu Cristian Florin Bota |
| author_sort | Daniel Petru Vârteiu |
| collection | DOAJ |
| description | Traditional costing methods assign indirect costs evenly, according to resource consumption bya product, while this consumption actually takes place in an uneven manner. To avoid such errors,entities seek to ensure best possible appraisal of uneven resource consumption, and the ABCmethod is one way of achieving this goal. The ABC method starts from the observation that it’s notproducts that consume resources but activities, and the entity’s activities are used by products.
Costing through this method requires taking the following steps: identification of activities,assessment of resources consumed by each activity, determination of cost drivers and calculationof unit costs for each driver, and allocation of activity costs for each cost object. |
| first_indexed | 2024-12-13T07:32:11Z |
| format | Article |
| id | doaj.art-f26903f6a0254b2d9ef70f6e37aa5ea1 |
| institution | Directory Open Access Journal |
| issn | 2393-3127 2393-3127 |
| language | English |
| last_indexed | 2024-12-13T07:32:11Z |
| publishDate | 2016-01-01 |
| publisher | Ovidius University Press |
| record_format | Article |
| series | Ovidius University Annals: Economic Sciences Series |
| spelling | doaj.art-f26903f6a0254b2d9ef70f6e37aa5ea12022-12-21T23:55:11ZengOvidius University PressOvidius University Annals: Economic Sciences Series2393-31272393-31272016-01-01XVI1622627Application of the Activity Based Costing System to the Wood IndustryDaniel Petru Vârteiu0Cristian Florin Bota1“1 Decembrie 1918” University of Alba Iulia“1 Decembrie 1918” University of Alba IuliaTraditional costing methods assign indirect costs evenly, according to resource consumption bya product, while this consumption actually takes place in an uneven manner. To avoid such errors,entities seek to ensure best possible appraisal of uneven resource consumption, and the ABCmethod is one way of achieving this goal. The ABC method starts from the observation that it’s notproducts that consume resources but activities, and the entity’s activities are used by products. Costing through this method requires taking the following steps: identification of activities,assessment of resources consumed by each activity, determination of cost drivers and calculationof unit costs for each driver, and allocation of activity costs for each cost object.http://stec.univ-ovidius.ro/html/anale/ENG/2016/2016-I-full/Section-V/34.varteiu_daniel.pdfABC methodactivitiesdriverscostsexpenses |
| spellingShingle | Daniel Petru Vârteiu Cristian Florin Bota Application of the Activity Based Costing System to the Wood Industry Ovidius University Annals: Economic Sciences Series ABC method activities drivers costs expenses |
| title | Application of the Activity Based Costing System to the Wood Industry |
| title_full | Application of the Activity Based Costing System to the Wood Industry |
| title_fullStr | Application of the Activity Based Costing System to the Wood Industry |
| title_full_unstemmed | Application of the Activity Based Costing System to the Wood Industry |
| title_short | Application of the Activity Based Costing System to the Wood Industry |
| title_sort | application of the activity based costing system to the wood industry |
| topic | ABC method activities drivers costs expenses |
| url | http://stec.univ-ovidius.ro/html/anale/ENG/2016/2016-I-full/Section-V/34.varteiu_daniel.pdf |
| work_keys_str_mv | AT danielpetruvarteiu applicationoftheactivitybasedcostingsystemtothewoodindustry AT cristianflorinbota applicationoftheactivitybasedcostingsystemtothewoodindustry |