IDEAS home Printed from
   My bibliography  Save this article

Integrating The Abc Method Of Costs Calculation And Cash Value Added


  • Marius Sorin Dinca

    (Faculty of Economic Sciences, Transilvania University of Brasov, Brasov, Romania)

  • Gheorghita Dinca

    (Faculty of Economic Sciences, Transilvania University of Brasov, Brasov, Romania)


In our paper we intend to explore the possibility of integrating the ABC method of cost calcula-tion with cash based value measure, i.e. the Cash Value Added. Our purpose is to develop an instrument for the management of productive companies that will allow them to administrate the proc-ess of value creation at the level of individual products or services. The activity based costing (ABC) method of cost calculation can be extended to the way of allo-cating the capital costs to individual products and services. In the same time, the value based measures can register the shareholders’ value creation process only at the company level and not for the individual products or services as they lack the information regarding the assignment of capital costs to those products. By integrating the calculus of Cash Value Added in the ABC method we consider that the man-agers will get an important managerial tool for the efficient allocation of the investment capital for the various products or services, given their real profitability, which can be determined by including capi-tal costs in the overall cost of the products or services."

Suggested Citation

  • Marius Sorin Dinca & Gheorghita Dinca, 2010. "Integrating The Abc Method Of Costs Calculation And Cash Value Added," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 57, pages 163-172, november.
  • Handle: RePEc:aic:journl:y:2010:v:57:p:163-172

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    More about this item


    The company value; value based measures; ABC method; operating costs; capital costs; economic profit; cash value added;

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other


    Access and download statistics


    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:aic:journl:y:2010:v:57:p:163-172. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sireteanu Napoleon-Alexandru). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.