ABC method – utility in the decision-making process
9/2004 , p66..70
Author(s):
Luiza ONEA
Keywords:
cost analysis method, direct and indirect costs, cost driver, production process reengineering, internal development.
Abstract:
From the performance management point of view, the utility of the ABC method can be given by the following aspects: the possibility to determine the necessary management indicators, the reduction of costs or the rationalization of production and a better control of the launching costs for new products. After an international investigation in 1999, the next statements were considered to be necessary concerning the ABC method: the notoriety at international level is well-known; its is a method adopted even by small and medium companies; this cost analysis method is better spread in the industrial sector rather than in the service one, but gains considerable significance in the banking, insurance and telecommunication sectors.
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