Uses of the mechanisms of modern cost accounting systems based on activities

Abstract EN

Effective construction of cost accounting systems is a critical task for companies today.

the company must maintain consistency between management systems, cost and budget, providing better information about the costs of each activity and getting acquainted with the cost drivers in advance enables forecasting activities and their costs.

thus, ABC system information is considered a source for preparing budgets (activity-based budgets).

categorizing cost system design elements into decision categories, to be used during the design process, simplifies the efforts and helps the designer both choose and assure that all meaningful elements are considered and compared, in order to create the most impactful and useful system for the company.