This specialist graduate thesis investigated the implementation of ABC's cost calculation method at a selected manufacturing company. Most companies in Croatia use outdated cost management methods. The selected manufacturing company, Pekara Klara d.o.o., is also listed in one of these companies. The reason for the unsatisfactory results in achieving cost efficiency of the traditional cost accounting method is the large increase in indirect costs, decreasing direct labor, reducing inventories, shorter product life span, faster and more frequent development of new products, a set of distributions. In order to improve cost management and as an objection to the traditional way of allocating general expenses, the method of activity-based cost-monitoring is developed, the ABC method. The paper will try to establish the effectiveness of the ABC model as a practical solution to accurate cost accounting in the selected manufacturing company and what are the benefits and the disadvantages of its implementation. The problem of how to achieve high quality and accurate information on company costs. Data will be collected from primary and secondary sources, it will consider and make the calculations needed to determine the costs and a detailed concept of cost allocation in the company is presented in the ABC method cost calculation. Through the answers to the questions asked will try to reach the goal. The aim of the research is to show the main features and importance of ABC's method of solving problems, point to its advantages and disadvantages, why it is at all important to the enterprise and its business and how it works.