IDEAS home Printed from https://ideas.repec.org/a/ovi/oviste/vxviy2016i1p622-627.html
   My bibliography  Save this article

Application of the Activity Based Costing System to the Wood Industry

Author

Listed:
  • Daniel Petru Vârteiu

    (“1 Decembrie 1918” University of Alba Iulia)

  • Cristian Florin Bota

    (“1 Decembrie 1918” University of Alba Iulia)

Abstract

Traditional costing methods assign indirect costs evenly, according to resource consumption by a 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 ABC method is one way of achieving this goal. The ABC method starts from the observation that it’s not products 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 calculation of unit costs for each driver, and allocation of activity costs for each cost object.

Suggested Citation

  • Daniel Petru Vârteiu & Cristian Florin Bota, 2016. "Application of the Activity Based Costing System to the Wood Industry," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 622-627, July.
    • Handle: RePEc:ovi:oviste:v:xvi:y:2016:i:1:p:622-627
    as

    Download full text from publisher

    File URL: http://stec.univ-ovidius.ro/html/anale/RO/wp-content/uploads/2015/03/ANALE-vol-16_issue_1_site.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ABC method; activities; drivers; costs; expenses;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ovi:oviste:v:xvi:y:2016:i:1:p:622-627. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gheorghiu Gabriela (email available below). General contact details of provider: https://edirc.repec.org/data/feoviro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.