This thesis is a case study on a factory in AnJcara. The factory is a producer of construction related equipments. The aspects of Activity Based Costing system are applied to calculate the costs of the products produced in the factory. This study will be used by the factory managers^ to restructure their product line^ price policy and marldeting decisions. In the thesis» the factory layout is explained biiefly. A Lotus 123 v .3 .1+ spreadsheet program calculates the cost for a finished product.