Activity-Based Systems: Measuring the Costs of Resource Usage Robin Cooper and Robert S. Kaplan Robin Cooper is a Professor at the Claremont Graduate School and Robert S. Kaplan is a Professor at the Harvard Business School. This paper describes the conceptual basis for the design and use of newly emerging activity-based cost (ABC) systems. TVaditional cost systems use volume-driven allocation bases‚ such as direct labor dollars‚ machine hours‚ and sales dollars‚ to assign organizational expenses
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●●●ReadTheory.Org © 2010 EnglishForEveryone.Org © 2008 Name________________ Date________________ “The Bus Driver” Reading Comprehension – Short Stories Directions: Read the story. Then answer the questions below. Dana Miller is a bus driver. She drives a bus in the city of Philadelphia. She works the night shift. That means she starts work at 10:00 at night and gets off at 6:00 in the morning. Dana has been driving a bus for 15 years. She started when she was 23-yearsold. She loves
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usually by yourself‚ it is very dangerous‚ and you have to drive ready to jump out in a emergency‚ because they are very common. If you make one little mistake on the road you are not only putting your own life in danger‚ you are putting every truck driver who is on the ice’s life in danger. It is very cold in the north and if your truck breaks down which is not uncommon‚ you could get frostbite in a few minutes if the heating system stops working. if you have to go out of your seat and go fix a part
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Executive Summary Lehigh Steel is a manufacturer of speciality steels for high strength‚ high use applications. Its financial performance has generally trended wit but outperformed the industry as a whole. Following the general recessionary trend of the market‚ Lehigh Steel reported record losses in 1991 after posting record profits in 1988. This had led to an increasing need to rationalizing Lehigh Steel’s product mix. Traditionally‚ Lehigh Steel has followed Standard Cost Method for cost accounting
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1 CHAPTER Introduction Practice Exercises 1.1 What are the three main purposes of an operating system? Answer: The three main puropses are: • To provide an environment for a computer user to execute programs on computer hardware in a convenient and efficient manner. • To allocate the separate resources of the computer as needed to solve the problem given. The allocation process should be as fair and efficient as possible. • As a control program it serves two major functions:
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more complex in nature. In this case‚ Greetings. INC has added a new product line‚ Wall Decor‚ which permits them to grow without expanding their physical stores; however‚ they have significantly raised their overhead costs by multiplying their cost drivers. Not to mention the fact that they have incorporated a largely automated system into their product line‚ which we know calls for an ABC system. The main reason to move to ABC though‚ would be because it will allow management to make better decisions
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and drilling. The naming conventions may vary between engineering disciplines and firms. Deep foundations can be made out of timber‚ steel‚ reinforced concrete and prestressed concrete. Prefabricated piles are driven into the ground using a pile driver. Driven piles are either wood‚ reinforced concrete‚ or steel. Wooden piles are made from the trunks of tall trees. Concrete piles are available in square‚ octagonal‚ and round cross-sections (like Franki Piles). They are reinforced with rebar and
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The analysis below is related to Wilkerson Company‚ which is a manufacturer of a few products supplied to manufacturers of water purification equipment. The three products they manufacture are: 1. Valves- high quality and highest tolerances in the industry; this product is what the company started from. 2. High-volume pumps- quickly became a major supplier of pumps; they manufacture and spend more machine hours on producing this product 3. Flow controllers- most unique and highest selling product
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In traditional approach‚ the exact cost of products or services is probably impossible to determine. The use of direct labor as the activity base made sense when overhead cost allocation systems were first developed. At that time direct labor made up a large portion of total manufacturing cost. Therefore‚ it was widely accepted that there was a high correlation between direct labor and the incurrence of overhead cost. As a result‚ direct labor became the most popular basis for allocating overhead
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INTRODUCTION The purpose of this case is to allow the reader to identify the behavioral variables that can determine the success of implementing an ABC system. There are several case studies that have been performed to examine technicalities in regards to ABC models and how profitability can be determined by the product‚ customer‚ or service. This case study focuses on how behavior can impact implementation because of the evidence that ABC has had high implementation failure rates and these failures
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