A Study Concerning the Application of the Activity-Based Costing Method for Entities Operating in the Building Sector

A Study Concerning the Application of the Activity-Based Costing Method for Entities Operating in the Building Sector

Number 6, June 2020  »  Management accounting

Associate Professor Delia David, PhD a
Daniela Pordea, PhD student b
Associate Professor Luminița Păiușan, PhD a
a "Vasile Goldiș" Western University of Arad
b West University of Timișoara

Abstract: Cost calculation plays an important part in the decision-making process of management of the economic entities. The aim of this article is to highlight the advantages and disadvantages of the Activity-Based Costing (ABC) calculation method when calculating the unit cost of the works done in the case of construction companies, by using the following research methods: observation, economic analysis, case study and descriptive. The results show that the application of the ABC method for the building sector leads to a more refined cost calculation which provides the management with more detailed information.
Classification JEL: M41, M11, L74 | Pages: 30-37

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