ABSTRACT
In the calculation of the cost price, overhead costs are often allocated to the products purchased via an apportionment formula. In this way, products that are sold a lot are disproportionately expensive, while it is precisely these products that ensure the efficient use of the production facilities. The model for Activity Based Costing (ABC) analysis deals with this problem because the actual costs are allocated to the products. The different products also require different activities and resources for production. Therefore, it is also reasonable to allocate the corresponding costs to that product. Cost objects are items for which a separate cost determination is required. With the reallocation of costs via ABC, it becomes clear at what cost products are made. It can occur that after reallocation some products become significantly more expensive and it is not possible to pass the higher price on to customers.
