VAST CHANGES IN INDUSTRIES, HEAVY COMPETITION IN SERVICE MARKETS, TECHNOLOGICAL ADVANCEMENTS AND FURTHER IMPROVEMENT OF COMPUTER SYSTEMS AND ETC… HAS CHALLENGED ORGANIZATIONS AND FIRMS IN THE MARKETAND FORCED THEM TO ADAPT THEMSELVES WITH THENEW ENVIRONMENT. COST ACCOUNTING IS NOW A NECESSITY IN THE HEALTH CARE SYSTEMS. TODAY’S WHERE INDIRECT AND OVERHEAD COSTS ACCOUNT FORSIGNIFICANT PART OF THE PRODUCTION COST, ALLOCATION OF OVERHEAD COSTS WITH TRADITIONAL METHODS WILL LEAD TO AN INACCURATE RESULT. INACCURATE COST WILL LEAD TO INACCURATE DECISIONS IN ASSESSMENT, ALLOCATION AND DETERMINATION OF COST OF PRODUCTS AND SERVICES. IN THE NEW CONDITIONS, ACCOUNTANTS MUST APPLY NEW METHODS AS activity based costing TO RESPOND THE NEEDS OF ORGANIZATIONS. IN TOTAL, activity based costing APPROACH AND TECHNIQUE IS A POWERFUL TOOL TO INCREASE EFFICIENCY, EFFECTIVENESS AND PRODUCTIVITY OF ORGANIZATION, ESPECIALLY IN THE ORGANIZATIONS THAT PROVIDE SERVICES RATHER THAN GOODS. GIVEN THE IMPORTANCE OF COST CALCULATION AND ITS EFFECT ON THE MANAGEMENT, USING NEW COST ACCOUNTING METHODS IS VERY CRUCIAL.