The Activity-Based Costing Method: Development and Applications
The IUP Journal of Accounting Research and Audit Practices, Vol. VIII, No. 1, p. 7-22
18 Pages Posted: 26 Jul 2010 Last revised: 26 Dec 2018
Date Written: December 23, 2008
This paper analyzes the management accounting applications, which try to improve the Activity-Based Costing (ABC) method. First, the paper describes them using the Strategic Management Accounting (SMA) stream. Then it presents the main features of these applications. Second, the paper examines in detail two of these features: the widening of the analysis perimeter and the relevant level of details to analyze the costs. Subsequently, it analyzes several proposals, such as Customer-Driven ABC, Interorganizational Cost Management (IOCM), Resource Consumption Accounting (RCA) and Time-Driven ABC (TDABC). Finally, it describes an experience observed in the IT supply European division of an international group. This group experiments, what we call an 'Activity-Based Supply Chain Costing Tool to manage its interorganizational relations.
JEL Classification: M40, M46, M47
Suggested Citation: Suggested Citation