In the traditional systems, this type of concern does not exist, being the cost of the product locked up at the moment of its ticket to the supply of finished products. The emphasis is in the determination of the cost of the activities of production and support (processes). The cost of the product is a secondary objective. The hand of direct workmanship is debited to the activity (process) and not to the product. This boarding eliminates the necessity to appropriate the hand of workmanship to the product.
Group of costs is synonymous of activity. The practical one to use only or an limited number of groups of cost is eliminated. The consumption of the activity is based on the amount of measures (units) of the activity consumed by the product. The measure of the activity represents the exit (production) of the activity. The identification or direct tracking of the activities to the products reduces the value of the indirect expenditures of manufacture to be distributed to the products. The direct tracking of the activities to the products does not distinguish the costs right-handers from the indirect ones. The cost is attributed directly whenever it can be established a relation of cause and effect between the activity and the product. The costs you tracked of marketing, sales, engineering and other costs of support also are debited directly to the products.
Thus we focus the total cost of the company and not only the production cost. The cost of the product includes the cost total of development, manufacture and distribution of a product. Many costs incurred during cycle of life of the product, that traditionally is considered expenditures, now will be tracked to the distributed products and throughout its existence. The cost of the life cycle propitiates to the administration a vision of the profitability in long stated period, it allows to better combine the strategies of prices at the cost of the products in the different periods of training of the life cycle and becomes possible the quantification of the impact in the cost of the alternatives of project of the product and the process. The impact of the variations of volume of the activities in the cost of the product, also can be quantified. Not financial measures of performance are incorporated, for global evaluation of the performance of the product. The two main benefits of the ABC cost are: 1-Acuracidade of the cost of the product 2-Visibility of the chances of reduction of costs and improvements of performance. We can infer that the ABC system can be adopted in the administrative and commercial areas of the company in the same way that is used in the production area, initiating for the analysis of the structure of the expenses of these areas with the determination of the factors that had given to origin the demand in accordance with the played functions. The system of ABC Cost tries to cure an existing chronic problem in the traditional systems, that divide are it of the indirect costs of the manufacture, based on criterion, arbitrarily selected. The ABC system diminishes allocations of on the basis of rateios costs, therefore through research in processes it looks for to locate the origins of the costs, thus being able places them with more exactness to the produced goods and services.