| Companies today are faced by fast changing of environment and tight competitions. Fast changing of environment makes cost of a product or service is dominated by overhead cost. These two conditions make company must choose costing method accurately. Traditional costing method that applied for more than one hundred years is not suitable as an accurate costing method. Activity Based Costing (ABC) method introduced by Robin Cooper nearly thirty years ago is presumed as an accurate costing method for today conditions. Yet, until now majority of die companies still apply the traditional costing method. It is caused by We several factors that the company must have in order to succeed in applying ABC. These factors are design, cross functional team, continuous training, commitment, compensation system, organizational cultural change, and integrated system. |