ABC COST SYSTEM AS FOR DECISION MAKING

Review article

Abstract

Companies have implemented traditional costing systems for a long time, despite the existence of new methods. For this reason, the implementation of modern costing systems such as the ABC costing system that is based on the activities of the organizations helps to know the cost that the company generates for the activities it carries out. However, many companies do not apply any costing system, much less the ABC costing system, they do not have the knowledge of knowing the exact cost of each of their products that they offer and for this reason, ignorance of the cost of the products can influence In decision making, it can be indicated that this costing is considered more than a cost calculation method, it is a management process that serves to manage operations and business processes that benefit strategic and operational decision making.

Keywords: Cost system, ABC, Decision making.