Empirical Model for Costing Gas Using ABC (Case Study Iran)

• Introduction With the reduction of public funding and the government's emphasis on accountability, output control and cost-effective in the delivery of services, organizations need information to measure their activities, link their inputs with outputs, correct their pricing, and measuring their performance in order to facilitate accomplishing their goals. This research is to explain the steps and the benefits of implementing (ABC) in Iranian Gas Company. • MethodologyTo reach this goal we have to using ABC, cost of one cub meter of consuming gas in all regions of capital was determined and compared with the results of the Traditional Costing Systems (TCS).• FindingsThe major finding from this study was that using ABC can provide more effective system for company internal decision-making, and can improve the effectiveness of the costing system and cost management and help the managers to correct company pricing of services and accomplishment of the strategic goals by giving more correct cost information. • ConclusionThe most obvious finding to emerge from this study was that implementing ABC strongly changed company managers' prospectives toward company cost of services. It is suggested that the association of these factors is investigated in future studies