Background and Aim: Determining the actual cost of various services has a great impact on the efficiency of hospitals and increasing their profitability. This study was conducted to introduce and apply the Activity Based Costing (ABC) Method in determining the total price of dental services.
Methods: The present study was conducted in 2015 in the dental department of a clinic affiliated with the Navy in Tehran, Iran. The necessary data was collected using methods such as observation and interview. After calculating the costs, the total cost of each process was calculated and recorded in tables. Using the two-way sharing model and with the help of the inverse matrix function, the costs of service and diagnostic units were allocated to each of the hospital's operating units directly dealing with patients by ABC method and then compared with traditional method results.
 Results: The total cost of patients in the dental department specifically indicate that there is a significant difference between the total costs of services in the traditional method compared to the ABC method.
Conclusion: This study showed that there is a difference between the real price of dental services and government tariffs, which in most activities has led to dental profitability. Due to the high share of direct wage costs in total expenditures (75%), therefore, by increasing labor productivity and improving performance management in the field of manpower and standardization, it is possible to reduce the cost of services and consumption of resources.