Performance focused activity based costing (PF-ABC)‎ system : a theoretical study

Abstract EN

This paper aims to present the content of performance-focused activity-based costing (PF ABC) system and the reforms it introduced to address criticisms directed at previous activity-based costing systems (ABC) and time-driven ABC (TD ABC).

to achieve this, a descriptive approach was adopted, drawing its significance from the latest versions of activity-based costing systems and their provisions for allocating indirect costs and providing necessary information for control and performance evaluation.

the study reached several results, most notably that the cost system succeeded in addressing the criticisms directed at ABC and TD ABC systems.

it recommends the necessity of organizing meetings and conferences that draw attention to such topics and increase the chances of their adoption in practice.