ABC and high technology: a story with a moral
Article Abstract:
A relatively small high-technology firm that designs, assembles and markets computer communication equipment decided to implement activity-based costing in its organization in an effort to rejuvenate itself. This undertaking involved the division of the company into three distinct business units: Harvest, Integration and Network. The first unit is for extending the original line of business but it is not expected to survive. The second unit is for the development of a complementary line of business. The last one is for finding communication solutions to the emerging network computing technology. The chief financial officer and his staff participated in the program but their involvement was not maximized to its full potential. They were not able to provide sufficient relevant information to support the decision making. Their limited participation is the result of the fact that the activity-based costing program was not tied to the corporate strategy.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1996
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Completing the picture: economic choices with ABC
Article Abstract:
Activity-based costing (ABC) involves the assignment of costs across a wide range of functions, from the point of purchase to the sequence of service, support and production operations to the finished product. Although it can remedy limitations in the comparison of utilized resources to ultimate products by identifying causes of costs within units, it combines fixed and variable costs before assigning them to outputs. This particular weakness limits effective economic decisions. To rectify this condition, the ABC system can be improved by separating fixed and variable costs throughout the cost accounting structure. Distinction between fixed and variable costs enables managers to employ the appropriate procedures in reducing wastes through management of aspects of production capacity and process design (fixed) and of production methods and practices (variable).
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1992
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How we changed our accounting
Article Abstract:
Six US Naval Aviation Depots altered cost accounting practices when a Total Quality Management program was instituted. It made specific changes in such areas as: automating manual procedures; improving bases for allocation of general and administrative expenses; and simplified summary report for production cost centers. The changes have reduced labor rates, developed technological innovations; enhanced business systems, and increased service to the fleet.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1989
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