A STUDY ON ACTIVITY BASED COSTING IN POWER SECTOR WITH SPECIAL REFERENCE TO GUVNL

Abstract

ABC is a cost management strategy that can help electric utility companies better understand and control their shifting expenses. It is a way for determining the costs associated with various activities, products, and services by analysing the underlying factors. Through the application of more precise process and product cost information, utility managers may make better decisions by better knowing which activities contribute and do not. Such information helps utility administrators make better strategic and operational decisions on an almost daily basis. Utility managers will learn about and be given an understanding of ABC's concept and approach in this paper, which provides insights into how ABC is being utilised to control costs and improve operational decisions in electric utilities and other industries. In the context of setting selling prices for the power industry, activity-based costing has been suggested as a means for obtaining more accurate costs. This article focus on the perception of the employees of the GUVNL towards activity based costing.