Discussion on the Application of Activity-Based Costing in Virtual Manufacturing Cell Mode

2014 ◽  
Vol 551 ◽  
pp. 290-295 ◽  
Author(s):  
Jie Lv ◽  
Ling Ling Xiong ◽  
Wen Min Han
Keyword(s):  
Production Efficiency ◽  
Cost Accounting ◽  
Virtual Manufacturing ◽  
Activity Based Costing ◽  
New Production ◽  
Manufacturing Cell ◽  
Current Production ◽  
Production Organization ◽  
The Cost ◽  
Manufacturing Mode

As a new development of cell manufacturing mode, virtual manufacturing cell (VMC) has complied with the new production organization requirements of current production efficiency and production flexibility improving synchronously, and it presents new characteristics in terms of cost accounting and cost control. Traditional cost methods present some shortcomings in VMC mode. For these situations, this paper discusses the advantages of activity-based costing (ABC) in VMC mode and improves traditional ABC to better meet the cost accounting requirements of VMC. Finally, an example is used to illustrate the basic use of the improved ABC in VMC mode.

scholarly journals Development of Theoretical and Methodological Foundations of Management Accounting in the Enterprises of the Service Sphere in the Field of Telecommunication in the Republic of Uzbekistan

2020 ◽  
Vol 6 (11) ◽  
pp. 288-293
Author(s):  
E. Shodiev
Keyword(s):  
Service Sector ◽  
Management Accounting ◽  
Cost Accounting ◽  
Activity Based Costing ◽  
Current Development ◽  
Target Costing ◽  
Internet Technologies ◽  
The Republic ◽  
The Cost

The article examines the current development of the theoretical and methodological foundations of management accounting at enterprises in the service sector in the field of telecommunications in the Republic of Uzbekistan. In particular, we study theoretical and organizational and methodological provisions for adapting cost accounting tools and calculating the cost of products and services to the organizational and technological features of organizations in the sphere of Internet technologies, as well as in developing a methodology for calculating the cost of products and services goal-costing, target-costing, Kaizen Costing, Activity-Based Costing.

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.

Research and Application of Activity-Based Costing in Drop and Pull Transport Enterprises Cost Management

2014 ◽  
Vol 587-589 ◽  
pp. 1888-1891
Author(s):  
Jing Wen ◽  
Bin Zhan ◽  
Xiao Hui Zhang
Keyword(s):  
Implementation Process ◽  
Cost Accounting ◽  
Effective Control ◽  
Costs And Benefits ◽  
Activity Based Costing ◽  
Operating Characteristics ◽  
Economic Resource ◽  
New Ideas ◽  
Accounting Model ◽  
The Cost

In order to realize the accurate accounting, accurate tracking and effective control of the cost of drop and pull transport enterprises, this paper established the costing model based on TDABC and combined with relevant cases to explain its implementation process. The cost accounting model makes cost accounting more convenient and economic, resource allocation and activitiy process more intuitive and clear, effectively improves the accuracy of cost accounting of drop and pull transport enterprise. TDABC will avoid the offset of costs and benefits in the traditional cost method, help enterprises to understand the overall development of its own operating characteristics and provide new ideas.

scholarly journals Managing customer profitability to improve corporate performance in PSF

2017 ◽  
Vol 15 ◽  
pp. 316-324
Author(s):  
Antonella Cugini ◽  
Silvia Pilonato
Keyword(s):  
Cost Accounting ◽  
Professional Service ◽  
Accounting System ◽  
Service Firms ◽  
Activity Based Costing ◽  
Customer Profitability ◽  
Professional Service Firms ◽  
Value Drivers ◽  
Profitability Analysis ◽  
The Cost

The paper discusses issues related to cost accounting systems and customer profitability analysis in professional service firms (PSFs), which have rapidly increased in Europe during the last decade. Because few research studies on cost accounting and customer profitability in PSFs have been reported, one of the main paper’s contributions relies on exploring the informative advantages of activity-based costing (ABC) compared to the cost centre accounting system. The research methodology used is a case study in which it is possible to investigate the link between the PSF’s costs and pricing/value drivers through service attributes and customer profitability analysis. The main findings show that the ABC system strongly supports the management of the cost–value relationship

Cost Knowledge and Cost-Based Judgment Performance

2001 ◽  
Vol 13 (1) ◽  
pp. 1-18 ◽  
Author(s):  
David T. Dearman ◽  
Michael D. Shields
Keyword(s):  
Cost Accounting ◽  
Performance Model ◽  
Future Research ◽  
Accounting System ◽  
Activity Based Costing ◽  
Cost Information ◽  
Good Judgment ◽  
Knowledge Content ◽  
Cost Accounting System ◽  
The Cost

This paper reports evidence on how managers' cost knowledge affects their cost-based judgment performance when a volume-based cost accounting system is used and products have diverse resource consumption. The evidence indicates that managers who have activity-based costing (ABC) knowledge content and/or an activity knowledge structure debias the cost information to have relatively good judgment performance. In contrast, managers with only cost-accounting knowledge content have relatively poor judgment performance. The judgment performance model (Libby and Luft 1993) provides the theoretical framework for this paper. Implications of this paper for future research are discussed.

The Application of Activity-Based Costing in E-Commerce Enterprises

2014 ◽  
Vol 926-930 ◽  
pp. 3992-3995
Author(s):  
Li Ping Xiao ◽  
Zhe Liu ◽  
Zhe Li
Keyword(s):  
Lower Cost ◽  
Cost Control ◽  
Cost Accounting ◽  
Activity Based Costing ◽  
The Cost

E-commerce has been developing quickly in recent years,the main advantage of E-commerce is the lower cost, so that cost control is important in E-commerce enterprises. Activities-Based Costing (ABC) is an new cost accounting method and is suitable to E-commerce. We introduce the cost of E-commerce and analyze the necessity of the application of ABC and then we show the ABC process in an example.

scholarly journals Dynamic construction of virtual manufacturing cell considering workload balancing and machine failure

2021 ◽  
Vol 268 ◽  
pp. 01060
Author(s):  
Zhe Lv ◽  
Junjie Fan ◽  
Lipeng Wang
Keyword(s):  
Programming Model ◽  
Transportation Cost ◽  
Virtual Manufacturing ◽  
Random Disturbance ◽  
Manufacturing Cell ◽  
Equipment Reliability ◽  
Machine Failure ◽  
Hybrid Particle Swarm Optimization ◽  
Process Route ◽  
The Cost

Machine is the key element in manufacturing system. Machine failure will lead to order delivery delay and production cost rise. Aiming at the random disturbance of equipment failure, a dynamic non-linear programming model of virtual manufacturing cell (VMC) is established, which aims to minimize the equipment cost, logistics transportation cost, delay delivery cost and the differences of workload among cells, based on the comprehensive consideration of equipment reliability, process route constraints, variable processing path and workload. Due to the high complexity of the problem, the hybrid particle swarm optimization algorithm is used to solve the model, and the rationality and effectiveness of the method are verified by a numerical example. Experimental results show that this method has advantages in reducing the cost of cell reconfiguration, improving the utilization of equipment and shortening the completion time.

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

scholarly journals A case study on the application of activity based costing on the magnetic inductor

2021 ◽  
Vol 10 ◽  
pp. 195-205
Author(s):  
Nurul Farahin Zamrud ◽  
Sri Nur Areena Mohd Zaini ◽  
Mohd Yazid Abu
Keyword(s):  
Cost Accounting ◽  
Cost Driver ◽  
Production Costs ◽  
Activity Based Costing ◽  
Economic Reality ◽  
Abc Method ◽  
The 1960S ◽  
The Moment ◽  
The Cost

Speedy improvements in cost accounting since the 1960s have been noticed, particularly after the 1980s, in the percentage of total cost, overhead costs have increased. The problem of overhead allocation was faced by several companies and a disparity between the available methods of overhead allocation was developed. Because of skewed facts about the viability of their orders, goods and clients, traditional cost accounting (TCA) not anymore represents the actual economic reality. Consequently, in the moment of increasingly growing material liquidity and ambiguity, a new costing approach is needed to address the weakness of TCA. The goal of the study is to establish a new costing structure using activity based costing (ABC) method to the magnetic inductor for better precision. The case study is located at electronic industry in Pahang, Malaysia. ABC reports on the costs of manufacturing, selling or funding the goods used in the operations. The job was done correctly by the operator to accomplish the entire mission. The maximum time used by operators is at epoxy application activity which is 44.04% and the smallest is 0.64% at oven curing and boundary inspection activity. The highest amount of cost of capacity is epoxy application activity with MYR 1,665,600.00 and the quantity of material utilized is selected as the cost driver. Since the product required volume is up to 10%, production costs are expected to increase by MYR 4,160,614.85 while the unit product cost is forecast at MYR 0.79. Therefore, ABC is an cost management insightful process and cost control efficient approach.

scholarly journals Cost Accounting In Auto Manufacturing Companies In Germany And The United States

2010 ◽  
Vol 9 (3) ◽  
Author(s):  
Robert Jinkens ◽  
RamMohan R. Yallapragada
Keyword(s):  
United States ◽  
Management Accounting ◽  
Cost Accounting ◽  
The United States ◽  
Financial Accounting ◽  
Manufacturing Companies ◽  
Activity Based Costing ◽  
Product Costing ◽  
Accounting Reports ◽  
The Cost

Corporate accountants are mandated to prepare and distribute financial accounting reports for external U.S.ers at end of each accounting period.  However, there are no similar statutory requirements for corporate accountants to provide managers of their companies with the management accounting information necessary for decision making in their bU.S.iness operations.   Cost accounting is an important integral part of management accounting.  Product costing has always been a much debated issue in management accounting.  The area that has generated a host of conflicting views is the allocation of overhead costs to products.  Traditional absorption costing is claimed to be resulting in an unfair allocation of overhead costs to products.  New approaches such as the Activity Based Costing (ABC) did not receive widespread adoption. It is being realized in management accounting field that an emerging costing method known as Resource Consumption Accounting (RCA) is a better method for product costing.  It is a method adopted by the German manufacturing companies.  This paper describes the German cost accounting method and also compares the German cost accounting with the cost accounting in the United States, specifically in the automobile manufacturing indU.S.try.

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