Activity-Based Costing (ABC) and Performance-Focused Activity-Based Costing (PFABC): A Comparative Study

Abstract

Given the importance of the resources and their relative scarcity, it has become necessary to preserve them efficiently and effectively in a way that guarantees their useful exploitation, and given the fact that the reality of industry in Iraq is waste of resources and energies. The basis of activities, namely the ABC system and the cost -based system, and a comparison between them and the possibility and importance of applying one of them in Iraqi industrial units because of the role of these systems in detecting unemployed energies and accurately in determining the costs of products and a censor role in performance and a different degree according to the type of activities that It is carried out by the economic unit and provides information to the unit administration that indicates the continuous improvement of the quality of products that lead to the customer's satisfaction for competition purposes and improving performance