Exploratory research of activity-based costing method implementation in Serbia

Abstract

The successful organization is the one that is able to improve quality, lower costs and increase efficiency of operations, and eliminate different activities and products that incur losses. To achieve this, organizations implement different costing systems. A costing system is a system that helps the management of an organisation with planning and decision making. This system plays an important role in providing accurate cost information about the products and services provided for clients. Many organizations shift their focus from conventional or traditional costing systems to an increasingly popular costing methodology system that is Activity Based Costing system. This article specifies characteristics and reasons for implementation of this method, and defines establishment of this method in Serbia.