Determining the optimal product cost using the ABCII Attribute-based costing technique: A case study at the ENICAB electrical cable manufacturing company in Biskra
Keywords:
Cost, Activities, Activity-based costing system (ABC), Attribute-based costing system (ABCII), ENICAB Cable Manufacturing CompanyAbstract
This study aims to propose a conceptual model for applying the ABCII Attribute-based costing system, this research was conducted at ENICABan electrical cable manufacturing company in Biskra, as an alternative to the cost system applied at this company. It was carried out during field visits and personal interviews with the target parties within the company,focusing on Product H07V-U205mm2 450/750v medium voltage type domestic cable, with a production capacity 320000 meters. We determined the cost of this product according to the ABCII system to be 32.758 DZD/meter. Compared to the applied cost system, the cost per meter was determined to be 33.75 DZD/meter, with a negative difference of- 1.062. This proves that determining the cost of a product using the ABCII Attribute-based costing system is capable of identifying the true optimal cost of the products that the customer wishes to obtain according to their needs and desires within their financial means.
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