A Comparative Analysis of Activity- Based Costing and Traditional Costing System: The Case of Egyptian Metal Industries
Khaled Samaha:
Sara Abdallah:
Metal Industries
June 2011
This case explains the application of ABC method in a single manufacturing organization operating in the metal industry and compares the results of ABC with the traditional volume based costing method. The recent literature reveals that traditional cost accounting systems systematically introduce serious product cost distortions, which lead to inappropriate strategic decisions. Activity-Based Costing (ABC) represents an alternative paradigm that is giving more accurate and traceable cost information.
For the full case: Please log in/sign-up