New costing system revolutionizes industrial practices, improving product pricing accuracy.
A new costing system called Activity-based costing (ABC) was developed to improve the way costs are assigned to products in the industry. The researchers focused on an electrics and electronics company that makes inductor components, using data from 2018. By using ABC, they were able to better link costs, overhead activities, and products, resulting in a more accurate way to assign indirect costs compared to traditional methods.