This site uses cookies to store information on your computer. Some are essential t others help us improve the user experience. By using the site, you consent to the placement of these cookies. Read our
to learn more.
Activity-based costing (ABC)&
Add to favourites
June 12 2013
What is it?
CIMA Official Terminology describes activity-based costing as an approach to the costing and monitoring of activities, which involves tracing resource consumption and costing final outputs. Resources are assigned to activities and activities to cost objects. The latter use cost drivers to attach activity costs to outputs.
ABC was first defined in the late 1980s by Kaplan and Bruns. It can be considered as the modern alternative to absorption costing, allowing managers to better understand product and customer net profitability. This provides the business with better information to make value-based and therefore more effective decisions.
ABC focuses attention on cost drivers, the activities that cause costs to increase. Traditional absorption costing tends to focus on volume-related drivers, such as labour hours, while activity-based costing also uses transaction-based drivers, such as number of orders received. In this way, long-term variable overheads, traditionally considered fixed costs, can be traced to products.
The activity-based costing process:
What benefits does ABC provide?
Activity-based costing provides a more accurate method of product/service costing, leading to more accurate pricing decisions. It increases understanding of overhe and makes costly and non-value adding activities more visible, allowing managers to reduce or eliminate them. ABC enables effective challenge of operating costs to find better ways of allocating and eliminating overheads. It also enables improved product and customer profitability analysis. It supports performance management techniques such as continuous improvement and scorecards.
Questions to consider when implementing ABC
Do we fully understand the resource implications of implementing, running and managing ABC?
Do we have the resources to implement ABC?
Will the costs outweigh the benefits?
Can we easily identify all of our activities and costs?
Do we have sufficient stakeholder buy-in? What will it take to achieve this?
Will the additional information ABC provides result in action that will increase overall profitability?
Actions to take / Dos
Actions to Avoid / Don'ts
Get buy-in from the rest of the business. ABC provides business managers, as well as the finance function, with the information needed to make value-based decisions
Use ABC for pricing and product prioritisation decisions
ABC should be implemented by management accountants as they are best placed to manage the process and to ensure benefits realisation
Do not get caught up in too much attention to detail and control. It can obscure the bigger picture or make the firm lose sight of strategic objectives in a quest for small savings
It is important not to fall into the trap of thinking ABC costs are relevant for all decisions. Not all costs will disappear if a product is discontinued, an example being building occupancy costs
In practice:
Activity-based Costing
How Xu Ji achieved standardisation in working practices and processes
(CIMA case study, 2011)
The Chinese electricity company Xu Ji used ABC to capture direct costs and variable overheads, which were lacking in the state-owned enterprise’s (SOE) traditional costing systems. The ABC experience has successfully induced standardisation in their working practices and processes. Standardisation was not a common notion in Chinese culture or in place in many Chinese companies. ABC also acts as a catalyst to Xu Ji’s IT developments – first accounting and office computerisation, then ERP implementation.
Prior to the ABC introduction in 2001, Xu Ji operated a traditional Chinese state-enterprise accounting system. A large amount of manual bookkeeping work was involved. Accounting was driven predominantly by external financial reporting purposes, and inaccuracy of product costs became inevitable. At this time, Xu Ji underwent a series of flotations following China’s introduction of free market competition.
The inaccuracy of the traditional costing information seriously impeded Xu Ji’s ability to compete on pricing. The two main tasks for the ABC system were to: trace direct labour costs directly to product
and allocate manufacturing overheads on the basis of up-to-date direct labour hours to contracts.
Lessons learned
The common ‘top-down’ management style and organisational culture among SOEs worked well when instigating innovative ideas and inducing corporate-wide learning. Top management’s commitment to trying out new management ideas and investing in new technology has been the unique feature.
Related and similar practices
Time-driven activity-based costing
Activity-based management (ABM)
Interested in ? You may also like....
CGMA Magazine
management accounting topics.
Stay connected with CGMA&&&activity-based budgeting
的翻译结果:
查询用时：0.158秒
&在分类学科中查询
The Activity-based Budgeting Process Analysis
作业基础预算流程分析
Study on Activity-based Budgeting system
作业基础预算体系研究
Activity-Based Budgeting management is a new type of budgeting management based on ABC.
作业基础预算(Activity-Based Budgeting，简称ABB)管理是建立在作业成本法基础上的一种新型预算管理方法。
So the Performance Prism based on stakeholder interests becomes the compatible one to be combined with Activity -Based Budgeting.
以此为出发点来进行作业基础预算管理研究，只有四个维度的平衡记分卡已不能满足其要求，基于利益相关者最大化目标的绩效棱柱就成为最为合适的选择。
By synthetically applying relevant theories about management accounting, managerial economics and quantitative economics and setting up the demand function, this paper obtains the most optimum sales mix based on profit maximization, thus removing limitations of personal estimation in traditional sales forecast. Additionally, the paper sets up an integrated, scientific activity-based budgeting system by using activity-based costing (ABC).
综合运用管理会计、管理经济学、数量经济学等有关理论,通过构建需求函数,求出利润最大化下的产品最优销量组合,消除了传统销售预测的人为估计的局限,并结合作业成本法(Activity-BasedCosting,ABC),建立完整、科学的作业基础预算体系。
Activity-Based Budgeting is a new type of budgeting management based on ABC.
其中,作业成本预算(Activity-Based Budgeting,简称ABB)就是建立在作业成本法基础上的一种新型预算管理方法。
Theoretically Analyses and Realistically Study on the Activity-Based Budgeting
作业成本预算的理论与应用研究
Secondly, the paper makes a systematic analysis of the intrinsic mechanism between balanced Scoreboard
activity-based
budgeting,
Scoreboard, activity-based budgeting, activity-based management and the enterprise's strategy to the enterprise's daily operations, builds a frame of vertical integration of cost control system based on activity-based budgeting, improves the standard cost system, presents activity based costing system and makes a study of the difficulty — standard amount of resource expenditure.
本文从与企业战略目标相结合的视角，系统分析了平衡计分卡与作业预算内在的机理，将平衡计分卡、作业预算及作业管理最终和企业的战略同企业日常运营活动联系起来，给出了基于作业预算的成本管理纵向整合的实施程序，对标准成本系统进行了改进，提出作业基础标准成本系统，对其中的难点标准资源消耗量的确定进行了研究。
The thesis analyses two formats-flexible Acitivity-Based Budgeting and baseline Activity-Based Budgeting, according to the contrast of the two formats, the paper creates the metric model of unused cost based o
理论方面,较系统地研究了ABB体系,重点对ABB的编制与控制以及作业基础业绩考核等进行系统分析。 深入分析了ABB的两种编制方法—零基作业成本预算和弹性作业成本预算,在对两者比较的基础上,建立了零基作业成本预算下的闲置资源成本计量模型;
This paper used the research fruit of domestic and overseas experts for reference, tried to study the theory of the combination of the Performance Prism and Activity -Based Budgeting management.
本论文在企业ABB管理研究基础上，借鉴国内外学者的研究成果，试图在理论与实践领域对绩效棱柱与ABB管理的结合进行探索性研究。
The Activity-based Budgeting Process Analysis
作业基础预算流程分析
Study on Activity-based Budgeting system
作业基础预算体系研究
On Activity-based Costing
略论作业成本法
Theoretically Analyses and Realistically Study on the Activity-Based Budgeting
作业成本预算的理论与应用研究
Based on the T.
论文以数学模型为研究手段,应用T.
查询“activity-based budgeting”译词为用户自定义的双语例句&&&&我想查看译文中含有：的双语例句
为了更好的帮助您理解掌握查询词或其译词在地道英语中的实际用法，我们为您准备了出自英文原文的大量英语例句，供您参考。&&&&&&&& At present, an essential problem facing strategic management of enterprises is that the carefully devised strategies can not be
effectively implemented
To solve this problem, many scholars have tried to use budget as tool for the strategic management. However,
the traditional budgeting can not effectively link up with an enterprise's development strategy. This paper, with the balanced score card
introduced
management
#... &&&&&&&&&&&&战略已成为企业成功的关键所在。目前,企业战略管理面临的一个最大的问题是精心制定的战略无法得到有效地实施。为此,许多学者试图将预算作为战略管理的工具。但是,传统预算不能与企业发展战略有效衔接。本文通过吸收美国著名学者卡普兰和诺顿于20世纪90年代发明的平衡计分卡的先进思想,试图构建以战略预算和作业预算为基础的战略管理框架,这将对实现企业战略目标具有重要意义。&&&&&&&& It's an inportant topic for managers to found a complete and useful budget system which is helpful to the progress of an organization. This paper introduces Activity-based Budgeting research of CAM-I who is a key founder of Activity-based Costing. The key terms of ABB includes Consumption Rate, Resources Needed, Resources Supplied, Resources Used, Financial Balance and Operational Balance. The ABB process involves modifying two of the seven steps in order to create an iterative... &&&&&&&&&&&&如何建立一套完整、有用的预算制度以协助企业发展,是目前企业管理者必须深入思考的问题。本文主要介绍了ABC研究的奠基者之一———国际高级制造商协会(CAM I)关于作业基础预算(ABB)的研究成果,包括ABB中的专用名词、基本流程和ABB闭环图的设计和应用,并以一例说明了企业如何进行作业基础预算。本文的研究目的在于说明ABB从战略和顾客需求出发,通过预测计划期生产、销售产品或劳务的需求量,从而预测相应的作业需求量,在此基础上预测资源的需求量,并与企业目前的资源供应量进行比较,使资源配置更加可信客观。&&&&&&&& By synthetically applying relevant theories about management accounting, managerial economics and quantitative economics and setting up the demand function, this paper obtains the most optimum sales mix based on profit maximization, thus removing limitations of personal estimation in traditional sales forecast. Additionally, the paper sets up an integrated, scientific activity-based budgeting system by using activity-based costing (ABC). &&&&&&&&&&&&综合运用管理会计、管理经济学、数量经济学等有关理论,通过构建需求函数,求出利润最大化下的产品最优销量组合,消除了传统销售预测的人为估计的局限,并结合作业成本法(Activity-BasedCosting,ABC),建立完整、科学的作业基础预算体系。&nbsp&&&&&&&&相关查询:
在Springer中查有关
在知识搜索中查有关的内容
在数字搜索中查有关的内容
在概念知识元中查有关的内容
在学术趋势中查有关的内容
2008 CNKI－中国知网
北京市公安局海淀分局 备案号：110 1081725
&2008中国知网(cnki) 中国学术期刊(光盘版)电子杂志社