Abstract
Article history: Received February 12, 2013 Received in revised format 10 May 2013 Accepted 12 May 2013 Available online May 28 2013 One of the primary concerns on performance measurement is to know how much a particular project cost. However, using traditional method on project-based products often leads to inappropriate results. In this paper, we re-examine this issue by comparing the cost of a power station construction project using ABC versus traditional method. The results of survey show that ABC method is capable of providing better estimates for overhead costs compared with traditional method. In other words, ABC method helps reduce some of the unnecessary overhead cost items and increase on some other cost components. This helps increase the relative efficiency of the system by reducing total cost of project. © 2013 Growing Science Ltd. All rights reserved.
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