The ABC system aims at achieving several advantages, including the costs associated with the disappearance of activities the identification of several cost pools and the distribution of additional costs in light of the consumption of the services provided by the various activities of the organizations. This leads to a precise identification of costs. The costs of services performed, and this helps rationalize administrative decisions Research Methodology The method of development through the theoretical study and the extrapolation method based on the field study through an analytical study of the accounting reality of the recycling plant in Kuwait based on the reports of the Council of Ministers, and then apply the cost system on the basis of activities and find out the impact on the final output. The most important results of the research were acceptance of the validity of the hypothesis: the introduction of accounting for costs on the basis of activity is the best option for the solid waste recycling laboratories in the face of the failure of the cost accounting system applied. Research Recommendations Restructure the institutions in general, whether systems, procedures and laws to keep pace with the advanced administrative systems and determine the cost system based on the activity to facilitate the distribution of indirect costs in the solid waste recycling plant. The application of modern cost accounting systems leads to the provision of accurate information so that the development of accounting and information systems Keywords:  Activity Based Costing System (ABC), Environmental Activity Reports, Council of Ministers, State of Kuwait