Activity-Based Costing System Advantages and Disadvantages

12 Pages Posted: 3 Feb 2005

Date Written: July 1, 2004


In this article one of costing systems, activity-based costing system (ABC), investigated with differences of traditional systems. ABC aims that to solve problems created by conventional costing system. ABC has been become widely used by companies in beginning of 1980s because of usefulness correct product mix decision, controls overheads and so on. But like the most of cases, new method also has problems, staff resistance, difficult to implement, timeliness information, unreliable information. Companies have been becoming hard to solve these problems as implemented Total Quality Management.

Keywords: Activity-Based Costing, Overheads

JEL Classification: M40, M41, M49

Suggested Citation

Reyhanoglu, Metin, Activity-Based Costing System Advantages and Disadvantages (July 1, 2004). Available at SSRN: or
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