The Study of Budget on the Basis of ABC and ABB Activities

The cost system based on activities ABC is one of the important modern technologies and has a large share of theoretical studies and foreign and Iraqi applied research. Since this system exists, it is subject to many research and studies to derive from it new techniques and tools that would support the provision of appropriate information for management to be used in areas Many of them make decisions, measure and evaluate performance. The problem search continued economic units in the region of Kurdistan in the traditional follow methods in measuring the cost of their products which resulted in the emergence of many problems when determining the cost of products. The objective of the research is to clarify the general requirements and steps for applying modern methods ABB and ABC. Learn how to deal with indirect costs under the use of the cost system based on ABC activities. The importance of this research as sheds light on the importance of the system cost based on the activities of ABC are not limited to achieve the accurate measurement of the costs, or offer of detailed information, but extends it represents a sound basis for the management of activities and processes of economic unity through integration with some of the methods and administrative techniques Modern as TOM, ABB, JIT. The ABC system divides the economic units into sub-activities and analyzes them and knows how they consume costs and the extent of their contribution to the production process, which leads to a reduction in costs by knowing which activities add value or do not add value to production and dispense with activities that do not add value. The ABC system of cost-based activities assists management in making appropriate management decisions based on more realistic costs, which are useful in various fields such as those related to pricing.