Activity-based costing, ABC technique

Abstract

When defining their organizational structure, small and medium-sized industrial or service-providing companies need to establish areas for the development of their functions, and each of them must meet the proposed objectives. One of the main technologies that respond to the new costing system, which increases the competitiveness of companies, facilitates the decision-making process and the design of strategies by offering more accurate and reliable information, is the activity-based costing technique (ABC), which was developed as a practical tool that uses information from an accounting system and identifies the real costs of a product/service.