Application of Activity Based Costing Method in Enterprises: A Practical case in Viet Nam

Abstract

In the current business conditions, enterpries must find all measures to improve competitiveness, expand and develop markets. In this context, the application of the Activity-based Costing plays an important role. The Activity-based Costing method considers the cost structure in the cost of products and sevices, tracks the causes of costs, the use of resources in the company, thereby helping managers properly analyze the profitabillty of products and services. In the paper, the authors will apply the activity-based cost method at company in general and in taxi company (Hoi An's Mai Linh taxi company) in particular and to assist managers in making reasonable and timely pricing decisions to enhance competitiveness.