One of the key parts of cost accounting is measuring the cost of a tangible or intangible product or service. All costing models attempt to discover the "correct" cost 1.and the actual cost with no cost variances for all cost objects, such as product, profit, segment, and division. Costing methodologies around the world apportion overhead using a volume-based measure, for example, the transformed unit to first price a pre-ordered overhead rate, then allocate overhead by applying this normal overhead rate to the object of cost. The request for such models applies to offices that produce goods with less diverse qualities. In any case, because manufactured products differ, the broad averaging methodology leads to severe cost variations (Johnson and Kaplan, 1987, Cooper and Kaplan, 1988). A more refined overhead allocation system, for example, Activity Based Costing (ABC) plans to reduce these cost estimating mutilations by creating various cost pools and allocation bases to allocate overhead expenses by item or administration in a two-step allocation procedure. One problem identified with the ABC framework work is that the allocation methodology accepts a close relative relationship between activities and costs. Noreen and Soderstrom (1994) test this directly related suspicion by examining the healing center's management of overhead and activity planning opportunities. The effects demonstrate that the proportionality hypothesis could be rejected for most general data. In normal accounts, the normal cost for each unit of activity exaggerates the marginal cost by about 40% and in some industries by more than 100%. An alternative study directed by Noreen and Soderstrom (1997) prescribes that the cost f...... half of the paper... edition H"", McGraw-Hill Irwin. New York, NY McNair, C. J. (2007). Beyond boundaries: Future trends in cost management. Cost Management, 21(1), p.10-21. Homgren, C, Datar, S. & Foster, G (2012). Cost Accounting: A Managerial Emphasis, Prentice Hall, Upper Saddle River, NJ.Johnson, H. & Kaplan, R (1987). Loss of Relevance: The Rise and Fall of Management Accounting, Harvard Business School Press, Boston, MA.Cooper, R. & Kaplan, R (1988). “Measuring Costs Correctly: Making the Right Decisions”, Harvard Business Review, September-October, p.96-103Noreen, E. & Soderstrom, N. (1994) “Are Overhead Costs Strictly Proportional to the Activity?” Journal of Accounting and Economics, vol.17 (1), p.255-278Kim, K. & Hon, I (2008). “Application of a hybrid genetic algorithm and neural network working approach in activity-based costing,” Expert Systems with Applications, vol. 24(1), January, p.73-77