Watchmaker Pole in PIM - Absorption Costing and ABC Case Study - Absorption Costing or ABC, challenges and opportunities in a watch factory in the Industrial Pole of Manaus

Stated on costs, the watchmaker companies in PIM seek every possible opportunity, where most of the inputs are imported, issued tointernational foreign exchange and other expenses in foreign currency, even added by the benefits to be installed on a Pole withincentives and exemptions tax. Thus, the cost and precise control might generate significant competitive advantages, even betterpenetration in the domestic market, and impose a higher attractive market share. It is included in this share the products importedabroad by other non-watchmaker that also compete in price and beauty in the same national market, adverse situation severely foughtby national watchmaker companies that sense themselves vulnerable by country tax system, not always able to keep the interests ofthe developed maintenance of technologies in the country. As a case study, some questions are important in this line of competitivethinking: Is it possible that this specific learning on allocation cost could offer more competitiveness to the business? The extent to amore detailed note on formatting the indicators of cost might increase their competitiveness? The ABC cost would be moreappropriate for the absorption costing, traditional and may be improved, or only the changing to an ABC model would be essential?What are the appropriate costing prospects of the business model?