The impact of compliance costs on the Activity Based Costing method and how it helps to bring down product costs

Authors

  • Dr. Raghad Hashim Jasim Accounting Department, College of administration and economics, Mustansiriyah University, Iraq.

DOI:

https://doi.org/10.55270/ijebs.v1i1.30

Keywords:

virus, corona, failure costs, quality costs.

Abstract

this essay seeks to define the quality costs associated with conformity. Based on the results, conformance and non-conforming costs were separated for quality costs. This essay also seeks to clarify the connection between the costs of conformance and the system's expenses based on ABC activities. The actions are split into two categories by the system: Whereas the second half of the activities is titled Activities that do not add value and costs to these activities are referred to as non-conforming costs, the first section is titled Activities that Add Value and costs of these activities are referred to as Conformity Costs. By focusing on the activities that add value, non-value-adding activities and their associated expenses (non-conformance costs) can be eliminated.

Published

2023-03-23

How to Cite

Dr. Raghad Hashim Jasim. (2023). The impact of compliance costs on the Activity Based Costing method and how it helps to bring down product costs. Ishtar Journal of Economics and Business Studies, 1(1), 1–10. https://doi.org/10.55270/ijebs.v1i1.30

Issue

Section

Articles

Categories