The aim of this paper is to give critical analysis and applicability of Activity Based Costing (ABC) methodology. The paper is divided into three main parts. The first part identifies key techniques and approach in ABC costing. The second part assesses the relevance of ABC, based on current debates and study done. The third and final section assesses the applicability of ABC costing to small and medium sized enterprises.
Table of Contents
- Introduction
- Key components of ABC costing approach
- ABC Costing Method
- The activity based costing process
- Assessing the relevance of ABC
- Applicability of ABC costing to small and medium sized enterprises
Objectives and Key Themes
This paper provides a critical analysis and evaluation of Activity Based Costing (ABC) methodology. It explores the key techniques and approaches within ABC costing, assesses its relevance in light of contemporary debates and research, and examines its applicability to small and medium-sized enterprises (SMEs).
- Key techniques and approaches of ABC costing
- Relevance of ABC in current business context
- Applicability of ABC to SMEs
- Comparison of ABC with traditional costing methods
- Limitations and challenges of implementing ABC
Chapter Summaries
- Introduction: This chapter introduces the purpose and scope of the paper, outlining its division into three main parts: key techniques of ABC costing, its relevance in current debates, and its applicability to SMEs.
- Key components of ABC costing approach: This chapter explores the fundamental elements of ABC costing, highlighting its importance for management decision-making and its role in improving efficiency and shareholder wealth maximization.
- ABC Costing Method: This chapter details the steps involved in the ABC costing method, including identifying activities, assigning costs to activity pools, calculating activity driver rates, and allocating costs to cost objects.
- The activity based costing process: This chapter outlines the five steps in the activity based costing process: identifying activities, classifying activities, accumulating costs, calculating activity driver rates, and assigning costs to cost objects. It also emphasizes the need for detailed study of business processes and costs.
- Assessing the relevance of ABC: This chapter examines the strengths and limitations of ABC costing compared to traditional costing methods. It highlights ABC's advantages in providing more accurate cost information for management decision-making and its limitations in terms of complexity and time consumption.
Keywords
The main keywords and focus topics of this paper include Activity Based Costing (ABC), traditional costing methods, cost allocation, activity drivers, cost objects, management decision-making, small and medium-sized enterprises (SMEs), and business environment.
- Citation du texte
- George Yiapanas (Auteur), 2015, Using of Activity Based Cost (ABC) in Small and Medium Companies, Munich, GRIN Verlag, https://www.grin.com/document/506358
