Activity Based CostingBASE DE DATOS PROQUEST DIRECT Activity-based costing for a hospice Strategic Finance; Montvale; Mar 2000; Sidney J Baxendale; Victoria Dornbusch; Abstract: Gone are the days when activity-based costing was just for manufacturers. Now, it has crept into service industries such as healthcare, banking and insurance. When the Hospice of Central Kentucky (HCK) was feeling the squeeze of cost increases while 3rd-part reimbursements remained constant, it thought that the only solution was to cut costs. But ABC revealed other options. HCK's management found that ABC could provide accurate cost information, and it used 6 steps, that can be applied to any organization, to develop its ABC system. As easy as ABC? It seems not! Accountancy Ireland; Dublin; Feb 2000; Martin Fahy; Gerry O'Brien; Abstract: Manufacturing industry is still an important part of the Irish economy, however it faces significant threats in an increasingly global environment. An essential part of ensuring the long term competitiveness of Irish firms is to configure and manage the manufacturing, sales and distribution processes in a way which reflects correct product and process choices. In this regard, Activity Based Costing/Activity Based Management (ABC/M) techniques have an important role to play. In particular, ABC/M supports a more strategic approach to cost management, product pricing, channel selection, product design and other important decisions Activity-based cost management system architecture--part II Strategic Finance; Montvale; Dec 1999; Robin Cooper; Regine Slagmulder; Abstract: As more powerful ABC (activity-based cost) systems become more available, the temptation to design overly complex ones will increase. These maximalist systems will rapidly become obsolete if they are not maintained continuously. In contrast, an integrated architecture approach will allow systems to emerge that are based on intelligent design principles. Splitting apart the strategic costing and operational improvement functions can improve the quality of system design dramatically. Using ABC to allocate audit costs The Internal Auditor; Altamonte Springs; Dec 1999; Daniel L Haskin; the data is collected and input to an application. plantwide manufacturing rate did not accurately reflect the cost of individual products is presented. By training and inclination accountants are detail oriented. The management assembled a multidisciplinary team to apply the basic concept of ABC to create a cost model that would accurately cost out each of the company's parts. The end result may represent substantial improvements in process and product for both auditors and auditees Activity-based costing Computerworld. and it can truly enhance their roles as business partner and consultant. Aug 1999. Framingham. . services. It allows managers to see which products or services are profitable or losing money. Douglas T Hicks. Gary Cokins. they typically become overwhelmed with data. too Journal of Accountancy. Yes. that is largely because the large-company myth became deeply embedded in conventional business thinking. That is beginning to change: Smaller businesses are adding ABC to their management tools and recognize it as a powerful aid. when CPAs undertake an ABC project. Next. Once the ABC team determined appropriate methods for costing the manufacturing and several nonmanufacturing activities. As a result. abhorring lack of precision and vagueness. activity-based costing is not only for large companies. This article attempts to get CPAs to see that activity-based costing is not that hard to implement. The experience of a small manufacturer that realized that a direct-labor based. Joyce Chutchian-Ferranti. The first step is to establish the activity centers and activities. ABC is for small business. The key to implementing ABC is to have a cross-functional team that includes representatives from IT. Internal auditors may find that ABC is an ideal technique for allocating the cost of internal audits to responsible managers. Aug 9. It works just as well for small organizations. Learning to love ABC Journal of Accountancy. Abstract: Contrary to conventional wisdom. These qualities are incompatible with ABC. This is called activity-based management the process of using ABC to analyze how efficiently activities are performed and how to manage them. Once the activities are established. Abstract: Activity-based costing (ABC) is a budgeting and analysis process that evaluates overhead and operating expenses by linking costs to customers. products and orders. New York. While it is true that ABC is still being used mostly by large organizations. 1999.ACTIVITY-BASED COSTING (ABC) HEIGHTENS management's ability to trace indirect costs and thereby provides more accurate data for evaluating results. you must determine the parts of each activity that cost money. From there. managers can determine what changes need to be made to give a company optimal profitability. Aug 1999. finance and the people who own the processes. Abstract: Activity-based costing works best with a minimum amount of detail and estimated cost figures. New York. it created a cost model and a spreadsheet template that used the rates generated by the model to cost individual products. pp. cost accounting. rather than an indirect one. 20.Designing ABC systems for strategic costing and operational improvement Strategic Finance. The methodology is tested and justified through extensive data collection and application in a major book manufacturing firm. USA. Abstract: As the demands of a strategic costing system and an operational improvement system are different. 2000. 13 p. Minnesota. activity based costing. and indicating areas in which to change company operations to yield cost reductions that will allow the company to satisfy customer wishes better. and Nesa L'abbe Wu Eastern Michigan University. Robin Cooper. Aug 1999. providing the industrial marketer with guidance as to which product specifications may be adjusted in negotiations to yield significant cost reductions. product costing. which divides these same costs into those that vary with unit-level activities. periodically. 2000. Regine Slagmulder. 11 p. 15. batch-level activities. and product-level activities and facility-level costs. Describes how recognition that cost may vary with something other than volume can make ABC a powerful tool for industrial marketers in three ways: yielding cost estimates to use in pricing that reflect significant differences among product specifications. This paper develops a methodology to break down the various tasks required in planning a job for production in the book manufacturing industry and to apply time measurement to these activities. Issue 1. January 19. The primary challenge created by the decision to develop the 2 cost systems is to ensure that the 2 systems articulate. February 17. Lere Professor of Accounting. USA Source: The Journal of Business & Industrial Marketing. Montvale. Probably the most effective solution is to develop 2 separate systems. Vol. Thus. the strategic costing system is refreshed to reflect the latest values of the updated standards from the operational improvement system. Articulation of the 2 activity-based systems occurs when. negotiating Abstract: Explains the differences between traditional cost behavior. industrial marketing. Principles of activity based costing are utilized to accomplish this feat. 23-33 ISSN: 14648180 Keyword(s): pricing. Michigan. BASE DE DATOS EBSCO Title: Activity-based costing: a powerful tool for pricing Author(s): John C. Michigan. . direct costs. and activity-based costing (ABC). St Cloud State University. Vol. which divides costs into variable and fixed categories. one for strategic costing and the other for operational improvement. Title: Systematic approach to activity based costing of the production planning activity in the book manufacturing industry Author(s): Curtis Walker Bard Fiber Optics. trying to design a single system to perform both tasks can rapidly lead to conflicts with the principles of intelligent design. activity based costing Abstract: This paper justifies the need for moving indirect production planning costing in the book manufacturing industry toward direct production planning costing. work measurement. Issue 1. USA Source: International Journal of Operations & Production Management. pp. 103-115 ISSN: 01443577 Keyword(s): product planning. These time measurements can then be used to individually cost the planning process of any book manufacturing company. this industry can now effectively apply cost to activities of the planning process for each individual job as a direct cost. Department of Accounting. Source: Logistics Information Management. Massachusetts. 8 p. Third. Second. pp. Yusuf Department of Mechanical and Manufacturing Engineering. Activity based costing (ABC) is gaining importance in organizations that are aiming for a major share in business by improving productivity and quality. pp. North Dartmouth. decision making. 9 p. Middlesex. Marri H.B.J. Issue 3. UK. University of Massachusetts. Finally. UK Source: Managerial Auditing Journal. H. 10 p.B. Vol. R. a framework has been developed in this paper for the implementation of ABC in SMEs. Marri Lecturers in the Department of Manufacturing and Engineering Systems. North Dartmouth. activity based costing. Massachusetts. 1999. Activity-based costing (ABC) has been found more appropriate for capital intensive manufacturing environments. there is no systemic framework for design and implementation of ABC. Traditional methods of cost calculation do not take into account this increased complexity and still allocate overhead costs by their diminishing labour base or even do not take into account overhead costs. USA Source: Managerial Auditing Journal. Middlesex. Even now some manufacturing organizations employ traditional costing methods depending upon their market forces and characteristics. Uxbridge. Uxbridge. the activities required to manufacture a product should be identified and then quantified by their consumption of resources. Title: A framework for the design and audit of an activity-based costing system Author(s): A. Realizing the importance of ABC. Nottingham. Uxbridge. 14. It is based on the review of literature on the design and implementation of ABC. Middlesex. Title: Application of activity-based costing: some case experiences Author(s): A. One of the most important decisions to be made is about the type of costing system that would be suitable for an organization. justification criteria for the implementation of ABC in SMEs are discussed. 1999. North Dartmouth. Hence. an attempt has been made in this paper to develop a framework for the design of an ABC system. In addition. some future research directions are presented in the area of ABC in SMEs. Vol. ABC has received little attention from SMEs in spite of the fact that it has an important role to play in improving the competitiveness of SMEs. the advantages and limitations of ABC are also discussed. Brunel University. 286-293 ISSN: 02686902 Keyword(s): implementation. The cost driver rate will be used to allocate the cost of activities to a product/part according to the volume of the cost driver. ABC.Title: Justification and implementation of activity based costing in small and medium-sized enterprises Author(s): A. implementation Abstract: There is a potential to improve the overall performance of SMEs and hence their competitiveness. Grieve are Lecturers in the Department of Manufacturing and Engineering Systems.Y. this paper reviews cost management practices in SMEs.B. cost management. UK Y. However. In ABC. October 1. Discusses the application of ABC and some case experiences (for commercial reasons. Issue 5. performance measurements play an important role in providing strategic directions and developing corresponding operational policies and methods. However. USA. First. there is a need for a more accurate product costing method. activity based costing Abstract: In present day manufacturing organizations. Gunasekaran Department of Management. Marri Department of Manufacturing and Engineering Systems. but at the same time the level of support services has increased. Grieve R. University of Massachusetts. Issue 6. systems design Abstract: The objective of a cost management system is to provide accurate and useful information to help companies in utilizing their valuable resources for producing quality goods and services in a competitive environment. Brunel University. implementation. MA. viz. Gunasekaran Department of Management. 12. UK. 118-127 ISSN: 02686902 Keyword(s): activity based costing. 1999. Vol. pp. Gunasekaran A. May 12. The role of direct labour in current manufacturing environments has diminished. December 6. USA H. Nottingham Trent University. Brunel University. Gunasekaran is a Lecturer in the Department of Management. University of Massachusetts. 14. . 386-394 ISSN: 09576053 Keyword(s): small to medium sized enterprises. the original identity of the companies is concealed) with the objective to provide information on whether the system would be applicable and under what circumstances it is better suited for improving the overall operational effectiveness of an organization. One such method is the activity-based costing (ABC) method which calculates the cost of activities and helps in making decisions on product mix and price for improving the utilization of resources and minimizing the cost of production. The cost of each activity that is required to produce the product/parts will be calculated in such a way that the factors causing or driving the cost (cost drivers) of the activity in question can be determined.J. and to continuously plan the quality improvement programs and control quality costs.Title: An integrated framework for activity-based decision making Author(s): Mike Partridge Principal Lecturer and Head of Management Accounting Subject Group. Recently the term Activity-based management (ABM) has emerged to describe any application of ABC data. 34 p. Taiwan. cost management. USA Source: Management Decision. University of Brighton. 9 p. Centre for Management Development. (2) the failure to trace quality costs to their sources. management. We have conducted a systematic review of internationally reported ABC applications to produce an integrated and comprehensive ABM framework for management decision making. Bitner Hood College. have been common since the publication of Hammer and Champy's (1993) popular book on reengineering. managers have virtually ignored the cost management system. We go on to illustrate our ABM framework with case examples. 1998. UK Source: Management Decision. pp. however. The cost and nonfinancial information achieved from the integrated COQ-ABC system can be used to identify the magnitude of the quality improvement opportunities. Vol. 580-588 ISSN: 00251747 Keyword(s): activity based costing. kaizen.activity-based costing (COQ-ABC) framework for measuring quality costs under ABC. Traditional methods of costing are critically evaluated as a precursor to explaining the ABC model. October 9. 7 p. Issue 7. Maryland. Chung-Li. work sampling Abstract: The purpose of this paper is to present an integrated cost of quality . Republic of China Source: International Journal of Quality & Reliability Management. to identify where the quality improvement opportunities exist. Finance and Accountancy Department. USA Larry N. Activity-based management (ABM) is a system that incorporates many of the concepts of strategic management reengineering and applies them to cost management. 441-447 ISSN: 00251747 Keyword(s): activity based costing. December 10. and (3) the lack of information about how indirect workers spend their time on various activities. Harrisburg. Frederick. Title: Quality cost measurement under activity-based costing Author(s): Wen-Hsien Tsai National Central University. strategic management Abstract: The design and implementation of new strategic management initiatives. 36. This paper presents the ten steps to design and implement an ABM system and offers an actual application. These deficiencies can be easily overcome under ABC together with work sampling. Trussel Pennsylvania State University. Pennsylvania. such as reengineering. Issue 7. pp. UK Lew Perren Principal Lecturer and Head of Small Business Research Unit. 15. pp. ABM consists of two viewpoints: a cost view and a process view. Vol. Brighton. decision making. Issue 9. but there is currently no framework which pulls together the disparate strands of potential uses. Brighton. The ultimate goal of the integrated COQ-ABC system will be to continuously improve processes/activities/quality so that no defects at all are produced and quality cost measurement ultimately becomes unnecessary. 1998. management accounting Abstract: Activity-based costing (ABC) data have the potential to inform a wide range of management decisions. Vol. In the process of designing and implementing these new initiatives. cost of quality. 719-752 ISSN: 0265671X Keyword(s): activity based costing. . 1998. The main deficiencies of most COQ systems are: (1) no consensus method to allocate overhead costs to COQ elements. ABM is both an accurate cost accounting system (the cost view) and a performance evaluation tool (the process view). Title: Strategic cost management: an activity-based management approach Author(s): John M. University of Brighton. October 9. 36.