Abstract:

Althought traditional cost approaches have inefficient to trace general overhead cost to product cost but still implement by the managers because this system is the most familar method of costing and it is relatively easy to implement Activity Based Costing ABC is a system which is designed to more accuretely trace overhead cost Althought ABC is highly efficient in tracing general overhead cost to product cost but inefficient to trace the capital cost In recent years some outhors have proposed that ABC should be combined with economic Value Added to create an integrated costing and performance system ABC component of this integrated system concantrate on operating expenses while the Economic Value Added component would concantrate on capital cost This study presents that a cost and performance measurement system that integrates the Activitiy Base Costing method with the Economic Value Added value based financial performance measure And also It is proposed that Integrated ABC and EVA system is successful management tool that helps to succesfully manage cost and capital KEY WORDS: Activitiy Based Costing Economic Value Added Cost System Traditional Cost Approach

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