The Evolution of ABC Costing

Abstract

Annotation. Companies face a strong global competition, so there is a lot of pressure to improve productivity and reduce production costs. Thus, obtaining a method for a rigorous and accurate assessment of the cost for different types of products produced at one enterprise has become a truly strategic task. To solve this problem, the ABC methodology was proposed, it establishes that resources are consumed by activities, and they are consumed by products and services. The allocation of resources by activity and subsequent allocation by product is carried out through cost drivers. Purpose of the article is to consider the key features of cost accounting systems: Activity Based Costing, Time Driven Activity Based Costing и Performance Focused Activity Based Costing. Methods of the research are analysis of scientific articles, observation, comparative analysis, complex and systematic approaches to assessing the essence of economic phenomena. Objects of the research are ABC Costing, Time Driven Activity Based Costing и Performance Focused Activity Based Costing. Results: the differences and main issues of different types of ABC Costing are revealed. Conclusions: ABC Costing has ample opportunities for decision-making in the framework of management accounting. The managers of each enterprise choose ABC Costing version to use independently. Based Costing.