THE ABC/ABM METHOD: A NEW PERSPECTIVE

ABSTRACT

This paper aims at showing that the traditional cost calculation methods no longer match the current principles of global economic competition, which bears now on the structure of costs, period of recognition, information structure and value. The Activity-based Costing (ABC) method, the most mediatized of management methods, presents the advantage of identifying the areas where waste originates. These areas are often activities with low added value, where unused capacities are considered in the constitution of costs. Then, this paper proposes to integrate this method with the EVA method and casts a new perspective on how financial performance of companies is measured.

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