Accounting Entries for Activity-Based Costing System: The Case of a Distribution Company

Shigaev, Anton

doi:10.1016/s2212-5671(15)00652-8

Cited by 7 publications

(4 citation statements)

References 1 publication

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“…They also explained that the integration of both ABC and mathematical models could yield better results in the setting of many problems. Shigaev (2015) explained the case of the realization of the two-stage cost allocation scheme of ABC in Russian accounting system implemented at a distribution company. They provided the case of preparation of accounting entries for ABC and associated customer profitability report at a distribution company.…”

Section: Expensesmentioning

confidence: 99%

“…We may create a cause and effect relationship between different activities and resource consumption, which helps product costing as well as cost control efforts (Swenson, 1995;Kock, 1995). There are several cases of successful implementation of ABC method (Bras & Emblemsvag, 1995;Ong, 1995;Foster & Swenson, 1997;Goddard & Ooi, 1998;Greene & Metwalli, 2000;Anderson, 2002;Tornberg, 2002;Chan, 2003;Lievens et al, 2003;Tsai et al, 2014;Kaplan et al, 2015;Shigaev, 2015). One of the primary concerns on implementation of ABC method is to select appropriate cost drivers (Babad & Balachandran, 1993) and many people have tried to use multiple criteria decision making techniques to detect efficient cost drivers.…”

Section: Introductionmentioning

confidence: 99%

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A state-of-art review on activity-based costing

Khodadadzadeh¹

2015

10.5267/j.ac

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Activity-based costing (ABC) is a method, which identifies activities in a firm and assigns the expenses of each activity with resources to all products and services based on the real consumption by each. This method allocates more overhead costs into direct expenses compared with conventional method. ABC method is normally used for costing as well as monitoring different activities, which involves tracing resource consumption. This paper presents a survey on advances of ABC based method. The study has discussed the advantages and disadvantages of the implementation of ABC based method in different industries. The survey also discusses recent advances on time driven ABC method in health care industries.Growing Science Ltd. All rights reserved. 5

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Section: Expensesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

A state-of-art review on activity-based costing

Khodadadzadeh¹

2015

10.5267/j.ac

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“…Yereli [7] applied ABC to a land transportation company by integrating it with business process modelling and analytical hierarchy approach. Similarly, Shigaev [22] applied the ABC approach to give a better insight in the actual cost structure of a positron emission tomography procedure by defining the constituting components and simulating the impact of possible resource or practice changes. In the case of gall bladder surgeries, ABC approach is proven to be an effective cost management model that determined costs and evaluated financial performance across departments [23].…”

Section: Introductionmentioning

confidence: 99%

Characterisation of activity based costing on remanufacturing crankshaft

Abu¹,

Jamaludin²,

Zakaria³

2022

Int. J. Automot. Mech. Eng.

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Traditional cost accounting applied by most remanufacturing industries assumes that manufacturing overheads are driven by the volume of production. However, this would not give a good measure of the actual manufacturing cost per unit because the overheads should actually be apportioned over the number of activities that are required to perform. Eventually, the cost of remanufactured crankshaft becomes obviously incorrect while the profitability becomes vague. The aim of this work is to estimate the cost of remanufactured crankshaft using activity based costing. The overhead costs are apportioned to activity drivers in accordance with the way resources are consumed and then, the overhead costs are apportioned from each activity driver to each cost object in proportion to the amount of the cost driver consumed by the product. The proposed method is validated by an industrial practitioner and expected to be able to serve as a useful approach because it produces a cost with accurate allocation of overhead, provides cost information on the cost drivers and produces accurate manufacturing cost and profitability information. This work is also supported by the Ministry of International Trade and Industry of Malaysia by proposing accurate allocation of overhead to strengthen the national remanufacturing policies for the development of remanufacturing industries as these industries need to sustain their end of life products.

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“…The main concern of ABC is company activities, which incur costs. Thus the ABC system makes it easy to calculate the cost of production thereby increasing the effectiveness of management decisions [6], [7]. Therefore, accurate information on cost based on production processes and activities through the ABC system will provide many benefits [8], [9].…”

Section: Introductionmentioning

confidence: 99%

Estimated Profits of Rengginang Lorjuk Madura by Used Comparison of Holt-Winter and Moving Average

Prasetyowati

Matsaini

2020

EECSI

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Rengginang Lorjuk is a typical Madura food that is ordered more by SMEs and is found in Sumenep Regency and several other areas in Madura. This product is made for supplies and orders, where demand will surge at certain times. Therefore, SMEs of Rengginang Lorjuk is required to have good planning in determining the selling price in accordance with the revenue target obtained. Considering that the main raw materials used are sticky rice and ensis leei (lorjuk) are raw materials that have fluctuating prices, this studio compares forecasting methods namely Holt Winter (HW) and Moving Average (MA), supported by MSE and MAPE, in order to obtain accurate forecasting results. These forecasting results show that HW has better accuracy than the MA, which is then used to calculate the cost of production with an Activity-Based Costing system, which requires charging costs for all activities carried out in production, namely the cost of raw materials, direct labor costs, and overhead factory fee. Using MAPE values, this study yields 4 estimates of production costs in accordance with changes in raw material costs.

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Accounting Entries for Activity-Based Costing System: The Case of a Distribution Company

Cited by 7 publications

References 1 publication

A state-of-art review on activity-based costing

A state-of-art review on activity-based costing

Characterisation of activity based costing on remanufacturing crankshaft

Estimated Profits of Rengginang Lorjuk Madura by Used Comparison of Holt-Winter and Moving Average

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