Current Trends of Application of Activity Based Costing (ABC): A Review

Global Journal of Management and Business Research Accounting and Auditing, Volume 13, Issue 3, Version 1.0, Year 2013

15 Pages Posted: 15 Apr 2016

See all articles by Nitin Kumar

Nitin Kumar

Green Hills Engineering College

D. G. Mahto

Green Hills Engineering College

Date Written: April 13, 2013

Abstract

Activity-based costing (ABC) is a method for determining true costs. Though ABC is a relatively recent innovation in cost accounting, it is rapidly being adopted by companies across many industries, within government and other organizations like institutions, finance or service sectors. In the light of current practices, this paper emphasizes to understand the need and importance of ABC costing in the organizations. This is coupled with management methods, an extensive range of uses, empowering utilization of ABC information for a wide variety of company functions and operations such as process analysis, strategy support and time-based accounting, monitoring wastage and quality along with productivity management.

Keywords: activity based costing, value added activity, cost drivers

JEL Classification: D23

Suggested Citation

Kumar, Nitin and Mahto, Dalgobind, Current Trends of Application of Activity Based Costing (ABC): A Review (April 13, 2013). Global Journal of Management and Business Research Accounting and Auditing, Volume 13, Issue 3, Version 1.0, Year 2013, Available at SSRN: https://ssrn.com/abstract=2764035

Nitin Kumar

Green Hills Engineering College ( email )

Nahan Road, Gandhigram
Kumarhatti P.O. Baholi
Solan, Himachal, Pradesh 173229
India

Dalgobind Mahto (Contact Author)

Green Hills Engineering College ( email )

SP-43, RIICO Industrial Area Kukas
Jaipur, Rajasthan 302028
India
8058799995 (Phone)
8058799995 (Fax)

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