Effective activity-based costing for manufacturing enterprises using a shop floor reference model

Abstract

International audienceThe accurate evaluation of production costs has become absolutely essential for companies today. Over the past few decades, the ABC method has offered a solution for allocating indirect costs using the cost driver concept. However, the activity-based costing method does not propose general criteria for identifying the relevant resources, activities and cost drivers on the shop floor. This article proposes a reference activity model that enables the activities and resources related to most of the cost objects of a particular shop floor to be deduced systematically. An industrial application illustrates the use of this model. The value of this approach is also discusse

Estimation of cellular manufacturing cost components using simulation and activity-based costing

“…Barth et al (2008) comments, "The accurate evaluation of production costs has become absolutely essential for companies today." While simulation models traditionally help in the estimation of production metrics such as machine utilization, processing time, and throughput times, the cost of a system/part is a universal performance characteristic.…”

“…These costs fall into two general categories: (1) costs directly tied to a product flow, and (2) those costs not tied to a product flow. Costs that are traceable to a product flow are ultimately assigned to the product (Barth et al, 2008). The costs not associated with product flow are assigned to the activities that make the costs necessary (Williams, Savory, & Rasmussen, 1997;Hicks, 1992).…”

Problèmes méthodologiques posés par les systèmes de valorisation dans les modèles économiques de management industriel

“…Le concept d'activité est large et ne se focalise pas sur la seule production d'un produit ; elle peut correspondre, par exemple à un lancement d'une série en production. Un inducteur d'activité et l'élément déclencheur ou générateur de l'exécution de l'activité (Barth et al, 2008). La comptabilité par activité englobe les autres approches de la comptabilité de gestion qui peuvent s'en déduire ; c'est la raison pour laquelle elle est privilégiée ici.…”

Costing the production of OSB using fibre impacted by mountain pine beetle

“…If cost calculations are based on inaccurate assumptions of the use of fixed overhead resources, profit margins will be inaccurately predicted and recorded (Deo 2001). This problem is exacerbated on modern shop floors as production machines have become more flexible, systems are more complex and automated, personnel operate many machines simultaneously, and highly qualified (and costly) staff are often used in carrying out operations (Barth et al , 2008).…”

“…In describing this costing appoach, Barth et al (2008) assert that ABC is based on the principal that "cost objects consume activities, activities consume resources, and resources consume costs. "…”