Activity-based costing (ABC) in Ryta Store 1 2

Abstract

This study aims to design and partially apply an Activity-Based Costing (ABC) procedure at Ryta Store, an enterprise focused on the commercialization of recycled clothing in a peripheral community of Holguín. The relevance of this study lies in the need to improve the accuracy of cost allocation in a business where indirect costs associated with activities such as garment selection, conditioning, and commercialization predominate. For its development, both theoretical and empirical methods were employed, including documentary analysis of the feasibility study and modeling of the production process. The proposed procedure consists of seven steps: (1) activity identification, (2) classification, (3) resource determination, (4) cost allocation, (5) cost driver definition, (6) unit cost calculation, and (7) decision-making analysis. The results show that the actual cost per garment exceeds the acquisition cost due to the value-adding activities involved in the process. Likewise, opportunities for optimization were identified in processes such as washing and repair. It is concluded that ABC costing enables more efficient management, contributing to the economic and operational sustainability of the business.