scholarly journals A Typology of Cost Accounting Practices Based on Activity-Based Costing – A Strategic Cost Management Approach

2019 ◽  
Vol 14 (2) ◽  
pp. 161-184
Author(s):  
Gregory Wegmann ◽  
Keyword(s):  
Cost Management ◽  
Cost Accounting ◽  
Management Approach ◽  
Activity Based Costing ◽  
Management Activity ◽  
Professional Literature ◽  
Accounting Systems ◽  
Strategic Objectives ◽  
Strategic Cost Management ◽  
The Cost

This article examines cost accounting methods containing one or more activity-based costing (ABC) like dimensions. The objective is to analyze cost accounting proposals with, in part, a philosophy reminiscent ABC. The research purposes are to analyze the strategic dimension of the methods described and to build a typology useful for managers. The discussion leads to a four-dimensional typology based on three strategic objectives assigned to the cost accounting systems. The foundation of the research is the Strategic Cost Management Theory from which emerges the ABC philosophy. The methodology applied is an academic and professional literature review. The typology designed shows common points and similarities of the methods observed and their strategic dimensions. Some of the methods studied are more or less useful for practitioners, according to the situation of their companies. Keywords: strategic cost management, activity-based costing, typology

Activity-Based Costing and Cost Interdependencies among Products: The Denim Finishing Company

2005 ◽  
Vol 20 (1) ◽  
pp. 51-62 ◽  
Author(s):  
Dennis Caplan ◽  
Nahum D. Melumad ◽  
Amir Ziv
Keyword(s):  
Production Process ◽  
Production Line ◽  
New Product ◽  
Cost Accounting ◽  
Activity Based Costing ◽  
Cost Information ◽  
Accounting Systems ◽  
Full Cost ◽  
Level Information ◽  
The Cost

A fictional example illustrates how interdependencies among products in the production process, and the costs associated with those interdependencies, challenge the ability of cost accounting systems to generate decision-useful product cost information. The cost interdependency in the current example is a production-line change-over cost that is incurred to retool a machine whenever the production process changes from one product to another. Both marginal costing and full cost activity-based costing (ABC) are employed in an attempt to provide decision-relevant product-level information in connection with the decision to add a new product.

Cost Control of the Civil Engineering Based on Activity-Based Costing

2013 ◽  
Vol 710 ◽  
pp. 790-793
Author(s):  
Yan Hong Liu ◽  
Guang Ling Hu ◽  
Qin Li Wang
Keyword(s):  
Civil Engineering ◽  
Cost Management ◽  
Cost Accounting ◽  
Engineering Industry ◽  
Accounting System ◽  
Activity Based Costing ◽  
Traditional Management ◽  
Accounting Systems ◽  
Management Accounting Systems ◽  
Cost Accounting System

In order to solve the current problems of cost management in civil engineering industry by using traditional management accounting systems, an effective method of activity-based costing is presented. Activity-based costing has been suggested as the leading contender method to replace traditional cost accounting systems, since its capability can make the processes and activities performed in the organization more transparent and observable. The paper attempts to develop a cost accounting system based on the activity-based costing ideas. The proposed method can provide the useful information to manage total processes in civil engineering. Nine operations are suggested in the proposed method, such as processing, pre-processing, post-processing, moving, and so on. As seen from the result of the case, the proposed method is of efficiency and feasibility.

scholarly journals Implementation of strategic cost management in manufacturing companies: overcoming costs stickiness and increasing corporate sustainability

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Mohammad Mahdi Rounaghi ◽  
Hajer Jarrar ◽  
Leo-Paul Dana
Keyword(s):  
Cost Management ◽  
Corporate Sustainability ◽  
Accurate Determination ◽  
Global Market ◽  
Management Approach ◽  
Accounting System ◽  
Manufacturing Companies ◽  
Strategic Cost Management ◽  
The Cost

AbstractIn today's competitive world, three factors: price, quality and time have critical roles in the success of the companies to achieve success in the competition. For this purpose, the companies have to also adapt themselves to changes in technology and environment. Strategic cost management is the best way to improve the sustainable management models in the manufacturing companies. Strategic cost management has solved many of the problems and shortcomings of traditional accounting system and by accurate determination of costs, their proper allocation to products and elimination of waste, tries to create value for shareholders by using continuous improvement. The objective of this paper was to develop a management model called strategic cost management that reduced costs stickiness and increased corporate sustainability. Using strategic cost management approach can create competitive advantage for the companies, because it provides accurate cost price information so that the users can easily understand the information. The aim of the paper by introducing strategic cost management was to contribute toward accurate pricing, which could result in the increased profitability and competitiveness of the manufacturing companies in a highly competitive global market and at a market‐based price. Also, due to the growing competition among companies in providing high quality products with reasonable prices, a precise system of measurement of the cost of the product is necessary.

scholarly journals Web based cost management tool prototype development using temporal-activity based costing (Temporal-ABC)

2021 ◽  
Author(s):  
Mourougavelou Vaithianathan
Keyword(s):  
Management System ◽  
Cost Management ◽  
Plant Performance ◽  
Management Tool ◽  
Activity Based Costing ◽  
Product Cost ◽  
Web Based ◽  
Prototype Development ◽  
Cost Management System ◽  
The Cost

The cost management system is a powerful tool for managers to understand manufacturing plant performance. It is essential for any organization to develop a cost management system to estimate the product cost and to account actual cost spent for the product manufacturing. The Activity Based Costing (ABC) system has recently attracted the attention of many companies and is considered to provide better information about the cost pattern and the relationship between resources and activities. However, a survey of earlier research reveals that there are several difficulties to estimate the true product cost due to selection of overhead drivers to activities. To overcome these difficulties Temporal-ABC has been developed by Dr. K.D. Tham. In the first part of the report, costing system implementation issues are studied through real-time case studies. Then, research has been conducted and web-based proptotype application is developed using Temporal-ABC through collaboration with a world-class electronics industry - Celestica Inc. Toronto, Canada. The developed prototype demonstrates the application of Temporal-ABC for cost estimation at Celestica.

scholarly journals The Effectiveness of the Quality of Performance Using the Cost Accounting Information System in the Control of Quality Costs Study in the General Company for Electrical Industries

2019 ◽  
Vol 27 (2) ◽  
pp. 115-132
Author(s):  
Hanan Abdullah Hassan Al-Amar ◽  
Qasim Ali Omran Al-Bayati ◽  
Huda Jabbar Kadhum Al-Haiyali
Keyword(s):  
Information Systems ◽  
Raw Materials ◽  
Accounting Information ◽  
Cost Accounting ◽  
Technical Standards ◽  
Accounting Systems ◽  
Accounting Information Systems ◽  
Quality Costs ◽  
The Cost

The financial operations which carried out by economic unity are proven treatment and documenting and continuous down to makers decision by relevance objective and time and then to reflect on the decision maker in any center of responsibility. That ’s provided by the system accounting information where the source is the basis for producing important accounting information, And the cost accounting information systems of the most important information systems that deal with data processing and conversion to information of relative importance to the beneficiaries. Which is consist with The objective of the research that emphasize the importance of accounting systems in general and systems cost in particular to achieve the highest c The research has led to a number of results, the most important of which is the difficulty in controlling quality costs as well as the waste of economic resources in the company. The researchers recommended adherence to the technical standards to achieve the quality of performance as well as conducting a thorough examination of samples and focusing on the quality of raw materials and testing before use to reduce the proportion Damage.

Determination of cost accounting objects, calculation and improving the calculation of product cost in agriculture

2021 ◽  
pp. 30-39
Author(s):  
Rolan Arkhipovich Alborov ◽  
Ekaterina Leonidovna Mosunova ◽  
Elena Vyacheslavovna Zakharova ◽  
Gregory Rolanovich Alborov
Keyword(s):  
Cost Accounting ◽  
Second Order ◽  
Agricultural Products ◽  
Accounting Systems ◽  
First Order ◽  
Management Accounting Systems ◽  
Order Calculation ◽  
Livestock Products ◽  
The Cost

The article deals with the problems of calculating the cost of agricultural products in crop and livestock production, associated with the methods of production accounting and management accounting systems for production facilities used in practice by agricultural organizations. Variants of definition (selection) of cost accounting objects, objects of calculation of the first order and objects of calculation of the second order are proposed. Conceptual models for the distribution of costs between the objects of the first-order calculation, the objects of the second-order calculation and the calculation of the cost of the received types of agricultural products have been developed. Using the example of the production of the main herd of dairy cattle, it is shown that the use of old methods of calculating the cost of agricultural products is not consistent, and it is recommended to use more justified methods of calculating the cost of crop and livestock products, recommended in the new editions of the relevant guidelines of the Ministry of Agriculture of the Russian Federation.

Strategic Cost Management in the Supply Chain

2020 ◽  
Author(s):  
Lisa M. Ellram ◽  
Wendy L. Tate
Keyword(s):  
Supply Chain ◽  
Cost Reduction ◽  
Return On Investment ◽  
Cost Management ◽  
Strategic Cost Management ◽  
Supply Chain Finance ◽  
Supply Chain Costs ◽  
Definition Of ◽  
The Cost

Companies increasingly face challenging economic times, where it is not uncommon to see revenues decline or remain stagnant. This can strain business viability and reduce the return on investment for shareholders. To increase the return on investment and favorably impact profitability, organizations focus on cost reduction efforts. Cost management should be both holistic and purposeful, while taking a supply chain perspective. This is often not the case because the cost reduction efforts tend to be internal and short-term focused and do not consider the supply chain implications of decisions. Strategic cost management takes a supply chain perspective and includes several tools that can help facilitate cost management. This chapter provides a definition of strategic cost management with supporting examples. It also discusses some tools, including total cost of ownership, target costing, and supply chain finance, that can be used to holistically and strategically manage supply chain costs. The chapter closes with a discussion around the growing role of supply chain finance in cost management.

scholarly journals The Cost of an Upper Gastroduodenal Endoscopy: An Activity-Based Approach

2002 ◽  
Vol 16 (7) ◽  
pp. 473-482 ◽  
Author(s):  
Ralph Crott ◽  
Nicholaos Makris ◽  
Alan Barkun ◽  
Carlo Fallone
Keyword(s):  
Medical Procedures ◽  
Biopsy Forceps ◽  
Activity Based Costing ◽  
Academic Hospital ◽  
Accounting Systems ◽  
Total Cost ◽  
Full Cost ◽  
Care Policies ◽  
Health Care Policies ◽  
The Cost

The cost of medical procedures is often unknown, but is nevertheless crucial for setting reimbursement and health care policies. The cost of an upper gastroduodenal endoscopy was investigated in ambulatory adults in a large academic hospital in the province of Quebec, from the perspective of the hospital.An activity-based costing methodology was used to break down the procedure into a number of priory tasks, to which resources used at the department level (labour, equipment, materials) were allocated. The direct cost of performing an endoscopy ranged from $62 for an unsedated, unbiopsied patient to $89 for a sedated, biopsied patient. Not included in this amount were separate reimbursement fees of $15 for biopsy analysis and the $50 professional fee for the performing physician, which are charged directly to the Ministry of Health.Incorporating overall, general hospital fixed overhead costs raises the cost of the procedure substantially, by $41, as does the use of nonreusable biopsy forceps, which adds about $63 to the total cost of the procedure.Given the high proportion of overall, hospital-wide, overhead costs in the total cost of the procedure, allocation methods of these overhead costs in current hospital accounting systems should be improved to obtain a more precise estimate of the full cost of upper gastroduodenal endoscopy.

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