Applying the Activities Base Cost Method in Product Pricing

The Activities Base Cost method is a method of determining costs by identifying cost centers or activity centers within an organization and determining costs for products and services based on the number of events. event or transaction related to the provision of a product or service. Product costs are calculated according to the Activities Base Cost method with an appropriate allocation criteria system, so the product price is determined more appropriately and the product price determined according to the Activities Base Cost method is the basis for Activity Based Management. Activity Based Management are methods implemented by administrators to improve profits, based on research into the system of determining costs by activity. The article presented the theory of Activities Base Cost including four steps to perform pricing in businesses. The article has applied the theory of Activities Base Cost to determine product prices for each batch of products in animal feed processing enterprises, in order to more accurately determine the cost of each batch of products for control. costs, product pricing and cost management decision making, helping to strengthen cost management in businesses.