The Benefits of Implementing ABC Costing for the Company

Annotation. Purpose of the article is to identify the benefits of using ABC Costing as a cost accounting system in the commercial enterprise. Methods of the research are analysis of articles, comparative analysis, integrated and systematic approaches to assessing the essence of economic phenomena. Objects of the research are ABC Costing as an alternative for classic cost accounting systems. Results: the author made a study of advantages of using ABC Costing. Conclusions: 1. Traditional cost accounting systems do not provide an accurate estimate of costs, therefore they cannot be used for making managerial decisions. 2. ABC Costing has a number of advantages when applied in commercial enterprises, such as: accuracy in estimating the production cost, reliable pricing, it improves business processes and directly the management process, strengthens the company's competitiveness.