Evaluation Of Cost Center Operations Using Abc Method
The continuous changes appearing in the industrial and economic environment, upgrading of manufacturing technologies, the need to obtain relevant information to facilitate management decision making, have made absolutely necessary the rethinking of the cost calculation system. Both traditional and modern methods used in management accounting for costing is based on cropping the enterprise into responsibility centers. But within the organization is being felt the interdependence that is impossible to identify a center whose costs and performances are not conditioned by other centers of responsibility. A.B.C. method is one of the means to produce a more relevant cost proposing to allocate indirect costs based on the distribution base showing the cause and effect relationship between activity and product-consuming activity. This article aims to show what cost centers are, which is their role within the responsibility centers, which are the positive effects and the limits of cost centers, which represents and what is the ABC method - a modern method of evaluating a cost center operations and which are the advantages and limitations of this method.
Volume (Year): 3 (2010)
Issue (Month): 19 (September)
Pages: 56 - 64
|Contact details of provider:|| Web page: http://www.univath.ro/facultati/facultatea_de_stiinte_economice|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ath:journl:tome:19:y:2010(iii):i:19:p:56-64. 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: (Emilia Vasile)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.