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Comparative Study On The Determination Of Costs And Results Under The Terms Of Use Of Abc Method And Method Of Calculation On Orders

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  • BUSAN GABRIELA

    (CONSTANTIN BRANCUSI UNIVERSITY OF TARGU JIU)

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.

Suggested Citation

  • Busan Gabriela, 2019. "Comparative Study On The Determination Of Costs And Results Under The Terms Of Use Of Abc Method And Method Of Calculation On Orders," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 98-103, June.
    • Handle: RePEc:cbu:jrnlec:y:2019:v:3:p:98-103
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