Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie (Jun 2019)
COMPARATIVE STUDY ON THE DETERMINATION OF COSTS AND RESULTS UNDER THE TERMS OF USE OF ABC METHOD AND METHOD OF CALCULATION ON ORDERS
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.