Comparative Study of Traditional and Activity-Based Costing in Forging Companies of Iran Tractor

The present study attempts to examine the impact/relationship between Activity Based Costing (ABC) adoption and implementation versus Traditional Cost Accounting (TC) in Iranian forging companies of Iran tractor manufacturing. Archival data were extracted from annual reports of 240 quoted companies in Iran for the year 2014. After conducting an interviews with engineers and industrial accounting experts, all the products were classified according to weight and by applying the sample method, only 10 kind of products were selected for the presented study. The results showed that, (A) - there is no significant difference between cost of every unit according to TC and ABC system and (B) - there is no significant difference between gross profit of every unit according to TC and ABC system. By applying the statistical methods whit the help of Micro Soft Excel and SPSS software the results suggested that the main hypothesis is confirmed and the sub-hypothesis Ha and Hb are rejected