Costs equations for cost modeling: application of ABC Matrix

Abstract

This article aimed at providing an application of the ABC Matrix model - a management tool that models processes and activities. The ABC Matrix is based on matrix multiplication, using a fast algorithm for the development of costing systems and the subsequent translation of the costs in cost equations and systems. The research methodology is classified as a case study, using the simulation data to validate the model. The conclusion of the research is that the algorithm presented is an important development, because it is an effective approach to calculating the product cost and because it provides simple and flexible algorithm design software for controlling the cost of products

Keywords

• Costs equations
• Cost Modeling
• ABC Matrix