scholarly journals An Analysis of the Time-Driven Activity-Based Costing System in Foundation Higher Education Organizations

2021 ◽  
Vol 11 (2Pt2) ◽  
pp. 537-549
Author(s):  
Burçin Tutcu
Keyword(s):  
Higher Education ◽  
Cost Management ◽  
Vocational School ◽  
Activity Based Costing ◽  
Scarce Resources ◽  
Service Production ◽  
Costing System ◽  
Program Costs ◽  
Traditional Costing ◽  
Higher Education Organizations

Changes in globalization and technology have made the competition in the education sector more in-tense. This change in competition has reduced the profit margins of educational organizations. In order to maintain their market share and maintain their assets under these conditions, organizations have had to put greater stress on cost management. Today, cost management has moved beyond simply being a sub-system of accounting and has become one of the main tasks of business management. Higher education organizations need to use scarce resources effectively and efficiently to achieve their goals, develop long-term strategies, and maintain their existence. The extent to which resources are used by whom and for what time should be determined correctly. The outputs obtained during this process should be checked and interpreted correctly. This study was designed as a case study and conducted in a vocational school of a foundation university in Istanbul. The aim of this study is to examine the service production process in foundation vocational school with different costing methods and to compare the results. For this purpose, the costs of the vocational school for the 2016-2017 accounting period were calculated by using both the traditional costing method and the time-driven activity-based cost-ing method. These two methods were then compared to find out their degree of accuracy in calculating the program costs.

scholarly journals Perception of activity based costing in Australian universities

2011 ◽  
Vol 7 (2) ◽  
pp. 64-78
Author(s):  
Monir Zaman ◽  
Mohamed Elsayed
Keyword(s):  
Management System ◽  
Cost Management ◽  
Positive Association ◽  
Chief Financial Officers ◽  
Generic Model ◽  
Activity Based Costing ◽  
Strategic Cost Management ◽  
Cost Management System ◽  
Traditional Costing ◽  
Australian Universities

The study examines the perception of activity based costing (ABC) in Australian universities. Using a questionnaire survey, data was collected from twenty-six finance directors and/or chief financial officers in Australian universities. The perception of ABC implementation in Australian universities depends on many variables including the understanding of ABC, consideration of ABC as a strategic cost management system, the role of ABC in reduction of expenses, consideration of ABC as a valuable tool to enhance overhead cost allocation, and consideration of ABC as an effective strategic cost management system designed to incorporate the university’s critical input, output, and process variables resulting in value creation. The result of regression analysis provides significant and positive association between the decision to implement ABC in Australian universities and both the treatment of ABC as a strategic cost management system and the degree of both senior management and internal champion support. The findings indicate substantial differences in the allocation of the overhead costs between ABC and traditional costing systems. The result also reveals that many Australian universities using the ABC method receive benefits in improving cost reduction and better resource allocation with revenue surplus. Furthermore, the study develops a generic model of cost pools and drivers of ABC implementation in Australian universities.

scholarly journals The importance of IT in the adaption of Activity-based costing (ABC) in Higher Education Institutions (HEI)

2013 ◽  
Vol 8 (1) ◽  
pp. 1228-1238
Author(s):  
Jamalludin Helmi Hashim
Keyword(s):  
Higher Education ◽  
Higher Education Institutions ◽  
Two Dimensions ◽  
Perceived Usefulness ◽  
Management Tool ◽  
Activity Based Costing ◽  
University System ◽  
Branch Campuses ◽  
Significant Difference ◽  
Traditional Costing

This study intends to highlight the possible significant relationship that may exists between Information Technology (IT) in the perceived usefulness of Activity-Based Costing (ABC) information as compared to the traditional costing across three different campus clusters of higher education institutions (HEI) in Malaysia. The perceived usefulness of ABC was represented by two elements, namely i) quality, and ii) functionality of costing system. The respondents were selected using disproportionate stratified random sampling method among the users of costing information in the biggest public university in Malaysia with a multi-campus university system. Among the twelve branch campuses across the country, the data was collected using structured postal questionnaires that were distributed to 96 respondents. The result indicated that there is no significant difference of perceived usefulness of information produced by ABC system across all three type campus clusters under study. Furthermore, statistical analysis also shown that there is no statistically significant interaction across three types of campus clusters to affect Perception of Usefulness (POU). As the findings from this study found to be contradict from the previous studies , these might be due to the nature of a multi-campus university system which practising the centralised administration across all branch campuses. In addition to that, unlike previous studies, this study extended the applicability of IT in two dimensions of university administrations, i.e., as a support system for administration and as a management tool.

scholarly journals Time-Driven Activity-Based Costing in the Assembly Industry

2020 ◽  
Vol 14 (4) ◽  
pp. 3-23
Author(s):  
Olga Vedernikova ◽  
Lorena Siguenza-Guzman ◽  
Johanna Pesantez ◽  
Rodrigo Arcentales-Carrion
Keyword(s):  
Printed Circuit Boards ◽  
Critical Role ◽  
Unit Cost ◽  
Labor Cost ◽  
Circuit Boards ◽  
Manufacturing Companies ◽  
Activity Based Costing ◽  
Accounting Systems ◽  
Costing System ◽  
Traditional Costing

Costs and their determination play a critical role in all manufacturing companies. The traditional costing system has received criticism resulting from the arbitrary allocation of indirect manufacturing costs. As an important initiative to address its weaknesses, new costing methods such as the Time-Driven Activity-Based Costing (TDABC) have emerged. Unfortunately, up to our knowledge, no investigations have been applied in analyzing assembly companies thoroughly nor considering all the processes necessary to obtain the final products. This article explores the TDABC application in the assembly industry through comparison with traditional volume-based costing by focusing on manual and semi-automatized production. Since the research is descriptive, a multiple-case study design was implemented in the assembly of televisions, motorcycles, and printed circuit boards. The developed methodology allowed determining the existence of factory overhead and direct labor cost variances between two different cost accounting systems, which also affected the unit cost of the products. Findings also highlight the benefits of TDABC application in the assembly industry, along with the shortcomings and future potential of research in this area.

scholarly journals A Guide to Implementation of Time- Driven Activity -Based Costing in Saudi Electronic University

2020 ◽  
Vol 16 (1) ◽  
pp. 68
Author(s):  
Salah Oraby
Keyword(s):  
Unit Cost ◽  
Academic Program ◽  
Academic Programs ◽  
Cost Driver ◽  
Accounting System ◽  
Activity Based Costing ◽  
Average Unit ◽  
Costing System ◽  
Traditional Costing ◽  
Unused Capacity

This research proposes a guide to implementation of time- driven activity -based costing (TDABC) in Saudi Electronic University (SEU) as an alternative to the traditional costing systems. It is worth mentioning that the cost accounting system should support mission and vision of the university by detecting any idle capacity and providing relevant information for rational decision-making as well as improving the quality of services provided to students and finally managing SEU’s resources efficiently and effectively. According to Saudi’s vision 2030, public universities in Saudi Arabia should act on both of revenue side and cost side. In the current costing system of SEU, there are no cost pools at colleges’ level, at academic departments’ level, at courses’ level, as well as at students’ level. Rather cost pools found at university’ level only. Therefore, the current costing system provides neither information on unit cost per student at any academic program nor information on the unused capacity at any resource centers. Despite the fact that TDABC theoretically overcomes the criticism to both traditional costing system that uses direct labor or machine hours as a cost driver and the traditional activity- based costing (ABC that uses many transactions cost drivers to allocate overhead costs to cost objects. The implementation of TDABC is still challenging particularly in universities by using the time as the primary cost driver for allocating resource costs to final cost objects in academic programs especially the human labor is considered the main resource in universities. The proposed guide to implementation TDABC provided SEU’s management information, including but not limited to, the average actual unit cost per student in each academic program either per semester, or per year, comparing actual fees students paid in each academic program to the actual average unit cost in each academic program to determine whether SEU covers all costs. In addition, comparing the average unit cost per student among all academic programs and investigating reasons of variations. The guide helps management determine the unused capacity in each resource center as well as preparing budgets of all resource centers accurately based on the actual used capacity.

scholarly journals Status of Activity Based Costing System in Selected Dairy Industries of Nepal

2013 ◽  
Vol 28 (1-2) ◽  
pp. 291-300
Author(s):  
Shankar Prasad Bhandari
Keyword(s):  
Activity Based Costing ◽  
Future Plan ◽  
Use Of Resources ◽  
Current Context ◽  
Costing System ◽  
Traditional Costing ◽  
Reducing Costs ◽  
Quality Of Products ◽  
Rate Of Profit

Profits and productivity both accelerate by reducing costs through better use of resources. In the current context of globalization, Nepalese Dairies should find out the ways to improve the quality of products along with the strategies of reducing existing costs. This study reveals that Dairy plants are using traditional costing system to recover their overhead cost. However, 37 percent were in favor of ABC in their future plan, 63 percent were satisfied with their existing system of cost accounting. They did not support implementation of ABC in future. Thus the existing system of costing in Dairy industry of Nepal is not effective neither to raise higher rate of profit nor productivity.

scholarly journals The Activity-based costing (ABC) in a Public Higher Education Institutions (HEI): Stakeholders perceptions

2013 ◽  
Vol 7 (3) ◽  
pp. 1125-1135
Author(s):  
Jamalludin Helmi Hashim
Keyword(s):  
Sampling Method ◽  
Public University ◽  
Public Higher Education ◽  
Activity Based Costing ◽  
University System ◽  
Branch Campuses ◽  
System Information ◽  
Costing System ◽  
Traditional Costing

The purpose of this study is to investigate the differences in perceptions, i)  on the usefulness of costing information produced by ABC and the traditional costing system, and ii) between users and preparers. The respondents were selected using disproportionate stratified random sampling method among staff in the biggest public university in Malaysia with a multi-campus university system. Twelve branch campuses across the country. The data was collected using structure postal questionnaires that were distributed to 153 respondents across all of their campuses. The results indicated that respondent perceived the information produced by ABC system as of higher functionality as compared to the traditional costing system information. The finding also showed that there was no significance difference between users and prepares with regards to the quality of ABC system, but users perceived the ABC information is of higher functionality than do the preparers.

scholarly journals Activity-based costing (ABC) Model for Public Higher Education Institutions (PHEI) : A guide for a Model development

2013 ◽  
Vol 7 (3) ◽  
pp. 1089-1100
Author(s):  
Jamalludin Helmi Hashim
Keyword(s):  
Higher Education ◽  
Higher Education Institutions ◽  
Model Development ◽  
Current Method ◽  
Abc Model ◽  
Activity Based Costing ◽  
Study Approach ◽  
Support Costs ◽  
Traditional Costing ◽  
The Cost

The purpose of this study is to develop the Activity-based costing (ABC) model for Bachelor of Accountancy (BACC) program in University of Excellence (UoE) Malaysia. A case study approach using the professional software, ABM-SAS, and the actual expenses figure for BACC for the year 20XX were used to develop the ABC model in this study. The finding showed that the cost computed using the ABC Model is lower as compared to the cost from the traditional (current) method, i.e. RM 8,678.54 and RM 10,509.99, respectively.  The differences amounted RM 1,830.55 in cost calculated by these two systems is not surprising. It is expected as many other researchers have discovered the same pattern on the lower cost of ABC as compared to the traditional method due to several reasons. Among others are,  (i) the inability of the traditional costing system in spreading their costs over larger numbers of students, ii) the support services do not benefit the programmes uniformly and, iii) there were internal cross-subsidies among departments and seriously distorted if support costs were allocated based on head counts. As such, this study confirmed the ability of ABC to act in higher education institutions with the same functions as its functions in the profit and manufacturing setting.

scholarly journals Activity-Based Costing and Its Derivatives and Significance in the Cutting-Edge Environment

2019 ◽  
Vol 2 (2) ◽  
pp. 107
Author(s):  
Tito IM. Rahman Hakim
Keyword(s):  
Problem Solving ◽  
Model Development ◽  
Cost Benefit ◽  
Business Environment ◽  
Cutting Edge ◽  
Activity Based Costing ◽  
Information Distortion ◽  
Costing System ◽  
Traditional Costing ◽  
Two Phases

The purpose of this article is to explore activity-based costing with its derivative, that is time-driven activity-based costing and fuzzy time-driven activity-based costing via some relevant researches and observe significance of this systems in sophisticated business environment. Activity-based costing is a costing system with two phases that track cost from activity to product. The emergence of activity-based costing is driven by irrelevance calculation of traditional costing system that cause information distortion. Therefore, activity-based costing emerges as a alternative problem solving of this distortion. But activity-based costing as a system has its drawbacks. These drawbacks try to be covered later with the emergence of model development of former activity-based costing. Through time-driven activity-based costing, activity-based costing that previously complex and expensive become simpler and more economic. Subsequently, through uzzy time-driven activity-based costing, calculation of time-driven activity-based costing that previously in-absolute and ambiguity become less. Through three tradeoff analysis, that is cost-benefit, complexity-simplify, and first-secondary, it is known that activity-based costing and its derivative still have a great significance in business environment that full of sophistication and recency.

scholarly journals Activity-Based Costing (ABC) and Its Implication for Open Innovation

2021 ◽  
Vol 7 (1) ◽  
pp. 41
Author(s):  
Patricia Quesado ◽  
Rui Silva
Keyword(s):  
Research Performance ◽  
Indirect Costs ◽  
R Package ◽  
Future Research ◽  
Activity Based Costing ◽  
Main Research ◽  
Technological Developments ◽  
Costing System ◽  
Traditional Costing ◽  
Over Time

Activity-based costing system, commonly known as the ABC system, emerged as a costing method capable of overcoming the limitations of traditional costing systems in face of economic and technological developments, namely, the arbitrary and imprecise allocation of indirect costs from distortions in the imputation criteria. In the current context, the development of an adequate costing system is of extreme importance in organisations because they feel the need to properly manage the resources at their disposal and control their costs to achieve efficient and effective management. Thus, this study aims to analyse international publications on the activity-based costing system in recent years, identifying trends in evolution and future research opportunities. Based on bibliometric techniques, the outputs obtained in the Web of Science (n = 752) and Scopus (n = 1107) databases were analysed in bibliometrix R package to make a systematic mapping and review of the literature. After removing duplicates, we obtained a final output of 1419 articles. The analysis of these publications points to a growing trend in the publication of articles on ABC, highlighting publications in partnership and their dispersion in magazines from different areas. The bibliometric analysis carried out results on the authors’ global research performance over time, and we highlighted the pioneering publications every five years and analysed the general evolution. When analysing based on publication authors over time, we highlighted the main research themes and countries where studies had been carried out. On the other hand, we also highlighted the collaborative network between institutions, authors, and countries over time.

Sign in / Sign up

Export Citation Format

Share Document