Published Paper Details:

Abstract In today's competitive market, raising prices or implementing cost reducing measures that are only cosmetic may not be a viable alternative because they may result in a loss of market share or a decline in service quality, respectively. The capacity to precisely measure costs to ascertain genuine profit margins is essential for deciding whether or not to eliminate unprofitable goods, service lines, channels, or consumers. It's easy to track sales, but more difficult to estimate expenses. Poor strategic decision making and skewed product costs are the result of the use of outdated costing methods. The purpose of Activity-Based Costing (ABC) is to overcome these shortcomings of conventional cost accounting methods. This paper reports the results of a longitudinal research conducted at an ABC-compliant facility in India The research was conducted at the facilities of the component suppliers to major production companies The outcome shows that the current system is not standardised, and that there has been no systematic approach to determining the various rates.