The comparison between activity based costing and traditional costing that practiced in Algerian manufacturing corporation

الملخص EN

This study aims to suggest practice of modern cost technique as an alternative for traditional cost technique.

The manufacturing was calculated the cost using traditional system, which the cost of product, is 542.

00 da is more than the cost of ABC system which is 468.

892 da.

The different is 73.

108 da; this amount will effect negative on organization performance, profitability, and enhance competitive position.

The result of calculating the costs it was less accurate to traditional cost accounting system, also traditional costing combines all indirect costs into a single cost pool.

The researcher was practiced the ABC in the real manufacturing, It was more accurate, as it resulted in efficiency, accuracy and objectivity of achieved Activity-based Costing purposes which is decreasing costs.

Key words: Activity-based Costing, Traditional costing, decrease the costs