The conclusion that can be drawn is that the ABC system is used by companies to get more accurate production costs, accurate production costs can increase company profits and the criteria for companies that are suitable for using the ABC system are companies with a high level of product diversity, there is intense competition with companies that produce similar products, as well as the cost of implementing the ABC system is low. This is because they provide a more precise breakdown of indirect costs. Step 1: Identify the products that are the chosen cost objects.

After conducting a literature study, the authors found similarities and inequalities among several literatures and then draw conclusions. ABC is a cost approach method by calculating the cost of activities to produce products, both goods and services where these activities require resources. Activity based costing systems are more accurate than traditional costing systems. ABC is a cost approach method by calculating the cost of activities to produce products, both goods and services where these activities require resources. In this literature study the authors divide ABC into 3 parts, namely the concept of ABC, the stages in ABC and the costs and benefits of implementing ABC. To achieve this, a good cost approach is needed, one of which is the Activity-Based Costing System (ABC). The activity based costing or ABC first introduced by Kaplan and Cooper in the 1980s. It is a more sophisticated method of cost allocation than the traditional volume-based costing method. It assigns costs to each step in the process according to the amount of resource consumed. In this way, it is a helpful tool for benchmarking a businesss. The focus of the activity-based costing method is on those activities which increase the variable/overhead cost of the product. Many business modeling products have implemented accounting methods for analyzing the value of business processes, and the most popular of these is activity-based costing (ABC). Competitiveness can be achieved by conveying product value to consumers at low prices. Activity-based costing is an approach that is used to track the cost of business activities. Increasing competition forces companies to be competitive.