Academic literature on the topic 'Traditional costing'

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics<br>This work project has the purpose of examining how banks choose a certain costing system and why. A survey addressed to all banks operating in Portugal was used to identify which organizational, contextual and cultural factors influence the banks’ decision to adopt a specific costing system. The importance of cost control, cost information and top management support, which are omitted factors from other studies, as well as nationality and cost structure were found to be statistically significant. No association was detected between the decision of adopting a costing system and the factors product diversity/complexity, level of competition, size of the bank and business segment.

Mestrado em Contabilidade, Fiscalidade e Finanças Empresariais<br>Desde os finais dos anos 80 tem-se mostrado que o Activity-based costing (ABC) é uma ferramenta que permite um maior rigor no cálculo dos custos dos produtos/serviços bem como orienta os gestores para as verdadeiras causas ou factores geradores de custos, permitindo, assim, orientar os gestores no sentido de criar valor na própria cadeia de valor da empresa. No entanto, alguns autores (Cohen et al., 2005 e Roztocki, 2004) afirmam que o grau de adopção do ABC no mundo é relativamente reduzido face à divulgação que tem recebido. O presente trabalho visa medir o grau de adopção do ABC, as razões para a sua implementação ou não, a forma da sua utilização, o sucesso na implementação, as condições que afectaram a implementação, os seus benefícios e a associação entre a adopção e a performance nos bancos e empresas de seguros em Portugal. Os resultados obtidos indicam que 54% das empresas financeiras portuguesas adoptaram o ABC e na maioria dos casos como sistema de custeio principal. Dadas as características do sector, o estudo revela que a principal motivação para a sua adopção prende-se com a obtenção de custos mais precisos para efeitos de pricing. No que concerne à implementação do ABC verifica-se o papel crucial da gestão de topo na liderança deste processo. Por outro lado, o tempo despendido, o volume de trabalho e o processo de recolha de dados são alguns factores revelados no estudo como obstáculos à implementação com sucesso do ABC. Por último, o ABC permitiu que as empresas obtivessem benefícios de vária ordem (e.g. melhorar o cálculo dos custos do produto) e sobretudo, apresentem uma performance financeira superior às suas congéneres que não adoptaram o ABC.<br>Since the end of the 80s has shown that the Activities Based Costing (ABC) is a tool that allows greater precision in calculating the cost of products / services and guide the managers for the real causes and events of costs, this is geared to managers to create value in the value chain of the company. However, some authors (Cohen et al., 2005 and Roztocki, 2004) argue that the degree of adoption of ABC in the world is relatively small compared to the disclosure that it has received. This study aims to measure the degree of adoption of ABC, the reasons to implement or not the order of their use, the success in implementation, the conditions that affect the implementation, its benefits and the association between the adoption and performance in banks and insurance companies in Portugal. The results indicate that 54% of financial firms Portuguese adopted the ABC and in most cases as the principal costing system. Given the characteristics of the sector, the study reveals that the principal motivation for its implementation is related to obtaining more accurate cost for the pricing. Regarding to the implementation of ABC there is the crucial role of top management to lead this process. Moreover, the time spent, the amount of work and the process of data collection are some factors revealed in the study as barriers to successful implementation of ABC. Finally, ABC has allowed the company to obtain benefits of several orders (e.g. improving the costing of the product) and most importantly, show a superior financial performance to their counterparts that have not adopted ABC.

The value of cost allocation comes from its initial purpose; decision support. In other words, cost allocation is considered a vital part of management, as it generates valuable information concerning efficiency and profitability. By applying Time Driven Activity Based Costing (TDABC) in a financial service company, this pilot study aims to learn from the consequences of the application, and discuss the lessons learned. The application resulted in a two-step allocation using Traditional Cost Allocation in the first step and TDABC in the final step, wherethe overhead cost of four support departments were allocated down to products. To build the model, interviews were conducted with personnel and internal documents were used. The application's most important lessons are thedifficultyofidentifying and measuring activities, the model’s requirement of high-quality data and the complexity of the capacity measures.

Då tillverkningsindustrin går mot en högre grad av kundanpassning och implementering av Lean, samtidigt som föråldrade traditionella kalkyleringsmetoder fortfarande används i moderna industriföretag, är det intressant att utreda relationerna mellan produktionsflöden av kundanpassad karaktär, Lean samt olika kalkyleringsmetoder. Syftet är att öka kostnadsprecisionen i förkalkylen för ett produktionsflöde av kundanpassad och Lean karaktär och beskriva en generaliserbar arbetsprocess för detta. Syftet är även att ta fram generella rekommendationer för val av kalkyleringsmetod genom att utifrån denna produktions karaktär genomföra en jämförande analys av kalkyleringsmetoder (traditionella kalkylmetoder, ABC och kalkylering enligt Lean). Genom en litteraturstudie samt en fallstudie av ett produktionsflöde med många varianter och inslag av Lean har båda syftena uppfyllts. Fallstudien har utförts genom intervjuer och observationer. Problem och positiva faktorer som enligt litteratur karaktäriserar produktion av kundanpassade produkter har även återfunnits på fallföretaget. Det sambandet har kunnat användas för att stödja analysen av relationerna. Relationerna mellan kalkyleringsmetoder, Lean samt produktionsflöden av kundanpassad karaktär har analyserats genom att jämföra litteratur och resultat från fallstudien. Det framkom att Value Stream Costing (VSC) är den mest lämpliga kalkyleringsmetoden för produktionsflöden med kundanpassade produkter som uppnått en hög mognadsgrad av Lean. Förkalkyleringen på fallföretaget är beroende av tillförlitliga operationstider, vilket tagits fram på fallföretaget samtidigt som en generell arbetsprocess utarbetats. Operationstiderna togs i detta fall fram genom videoupptagning av produktionsmomenten samt efterföljande analys i mjukvaran AviX. Genom att följa den generella arbetsprocessen som utarbetats erhålls både ett bra underlag till förkalkylering samt ständiga förbättringar i produktionsflödet. Eftersom forskning visar att Lean bör implementeras i hela organisationen om full fördel med Lean ska uppnås, kan VSC vara en utmärkt kalkyleringsmetod för att komma ifrån föråldrade, traditionella kalkyleringsmetoder samtidigt som denna kalkyleringsmetod förenklar kalkylering i produktion av kundanpassad karaktär.<br>Since the manufacturing industry is heading for a higher level of customization and implementation of Lean, at the same time as outmoded traditional costing methods is still used in modern industrial organizations, it is interesting to explore the relations between production flows of customized character, Lean and different costing methods. The purpose of this thesis is to increase the cost precision in the preliminary calculation for a product flow of customer adapted and Lean character, and to describe a generalizable work process for this. The purpose is also to develop general recommendations regarding the choice of costing methods by, on a basis of the character of this production, a comparative analysis of costing methods (traditional costing methods, ABC and Lean accounting/VSC). Through a literature study and a case study of a production flow with a high level of variety and influence from Lean, both of the purposes has been fulfilled. The case study has been accomplished through interviews and observations. Problems and positive elements that according to literature characterize the production of customized products have also been found in the case company. That connection has been used to support the analysis of the relations. The relations between costing methods, Lean and production flows of customized character has been analyzed through a comparison between findings in literature and results from the case study. It has been found that Value Stream Costing (VSC) is the most appropriate costing method for production flows of customized products that has reached a high maturity level of Lean. The preliminary costing is dependent on reliable operation times which have been produced on the case study company, while a general work process has been developed. The operation times were in this case identified through video recordings of the production moments and a following analysis in the software AviX. By following the general work process that has been developed, useful material for preliminary costing and continuous improvements in the production flow will be obtained. Since research is showing that Lean should be implemented in the whole organization if full advantages of Lean shall be obtained, VSC is found to be an ideal costing method to replace outmoded, traditional costing methods at the same time as this costing method simplifies costing in production flows of customized character.

Bakgrund och problem: Det har riktats kritik mot den traditionella ekonomistyrningen vilket har gjort att moderna styrmetoder och verktyg växt fram för att komplettera ekonomistyrningen. De faktorer som tvingat fram den moderna styrningen går även att se i musikbranschen. Detta, tillsammans med att ekonomistyrning i musikbranschen generellt sett är outforskat, gör att det blir intressant att undersöka hur skivbolag i musikbranschen använder sig av en traditionell ekonomistyrning eller modern verksamhetsstyrning. Syfte: Syftet med denna uppsats är att genom att undersöka två skivbolags ekonomistyrning kartlägga hur ekonomistyrningen karaktäriseras utifrån traditionell ekonomistyrning och modern verksamhetsstyrning. Metod: Metoden som använts vid denna studie är kvalitativ. Vi har genom fallstudier hos två skivbolag undersökt och skapat oss en förståelse av ekonomistyrningen i bolagen med hjälp av semi-strukturerade intervjuer och kompletterande frågor via mail.   Slutsats: Det går att se att skivbolagen övergått delvis till en modern verksamhetsstyrning men att det alltså finns en blandning mellan användandet av traditionella och moderna styrmetoder och verktyg.<br>Background and problem: Criticism has been raised towards the traditional management control which pushed forward modern management methods and tools to complement management accounting. The factors that pushed out this modern management control are possible to see in the music industry aswell. This, together with the fact that management control in the music industry has a research gap, makes it interesting to examine how record labels in the swedish music industry are using traditional or modern management control. Purpose: The purpose of this thesis is to through the examination of two record labels create an understanding of how the management control is characterized through traditional or modern management control. Method: The method used in this study is qualitative. We have through a multiple-case study at two record labels examined and created an understanding of the management control in the companies with the help of semi-structured interviews and complementary questions through mail. Conclusion: It is possible to see that the record labels has partly moved to modern management control but also that you can see a mix between the usage of traditional and modern control methods and tools.

Bakgrund:                   För att stärka sin position på marknaden önskar Staples Sweden AB utöka sitt artikelsortiment till att omfatta 1 000 000 artiklar. För att möjliggöra sortimentsexpansionen behövs beslutsunderlag rörande hantering och kostnadsstruktur identifieras. Syfte:                          Syftet med studien är att utveckla en modell vid val och utformning av distributionssätt för att föreslå en distributionsslösning. Syftet är också att genom en kostnadsanalys identifiera orderkostnadsstrukturen för den föreslagna distributionslösningen. Metod:                        Vid genomförandet av studien tillämpades en fallstudiedesign. Det empiriska materialet samlades in genom intervjuer utförda på Staples Sweden AB. Slutsats:                      Vid tillämpningen av modellen som utvecklades i studien framkom att distributionslösningen ska utgöras av direktleveranser, konsoliderade direkleveranser, ”cross-docking”, ”cross-docking” med buffert och traditionell lagerhållning. Orderkostnaden skiljde sig mellan distributionssätten där ”cross-docking” var billigast och direktleveransvarianterna var dyrast.<br>Background:               To strengthen its position on the market, Staples Sweden AB seeks to expand its product range to include one million articles. The problem is that no one in the company knows how such a variety of items should be managed and how the structure of order costs would change. Based on these problems, the task for the study arose. Purpose:                      The thesis aims to develop a model for the selection and design of distribution methods for proposing a solution that can manage one million articles. It also aims to identify the structure of order cost for the proposed solution through a cost analysis. Methodology:             The study was conducted by applying a case study design. The empirical data were collected through interviews conducted at the Staples Sweden AB. Conclusion:                 In the application of the developed model showed that the distribution solution should consist of direct shipping, consolidated direct shipping, cross-docking, cross-docking with buffer and traditional warehousing. Order cost differed between distribution where "cross-docking" showed to be the cheapest and direct shipping variants were the most expensive.

Die musikwissenschaftliche Auseinandersetzung mit der psalmodischen Musik, die bis 1990 etwas undifferenziert als ‚Byzantinologie‘ bezeichnet wurde, nahm an Klarheit und Raffinesse zu, so dass man heute von einer regelrechten ‚byzantinischen Musikologie‘ sprechen kann.

Abstracts in English, Xhosa and Afrikaans<br>The South African Social Security Agency (SASSA) is the mechanism that enables service delivery to alleviate poverty in South Africa through the payment of social grants as mandated by the Social Security Agency Act No. 9 of 2004. The rapid increase of social grant beneficiaries in the past decade, fuelled by social inequality, directly affects the administration cost associated with social grants. This study aimed to investigate the allocation of indirect costs related to the administrative elements that makes it possible for SASSA to pay social grants. Semi-structured interviews were conducted; the study concluded that ABC (activity-based costing) could be implemented as an alternative to the traditional costing (TC) method on a pilot project basis. The study also recommended a framework for SASSA to consider in laying the foundation to start the process of ABC implementation. Drawing from the research conducted, further studies on the implementation of ABC principles within the public sector could be pursued.<br>Ejensi ya Vuhlayiseki bya Vanhu ya Afrika Dzonga ku nga South African Social Security Agency (SASSA) i ndlela leyi endlaka leswaku mphakelo wa vukorhokeri wu koteka ku hunguta vusweti eAfrika Dzonga hikwalaho ka ku hakeriwa ka timalimpfuneto ta vanhu (social grants) tanihileswi swi pfumeleriweke hi Nawu wa Social Security Agency Act 9 wa 2004. Ku ndlandlamuka ka vavuyeriwa va malimpfuneto ya vanhu swi khumbha hi ku kongomisa tihakelo ta vulawuri leti fambelanaka na timalimpfuneto ta vanhu. Dyondzo leyi yi kongomisiwile eka ku lavisisa mphakelo wa tihakelo to ka ti nga kongomisi leti fambelanaka na swiyenge swa vulawuri leswi endlaka leswaku SASSA yi kota ku hakela timalimpfuneto ta vanhu. Ku endliwe ti-semi-structured interview. Dyondzo yi kumile leswo ti-activity-based costing (ABC) ti nga tirhisiwa hi ndlela yo cincana na maendlelo ya vupimahakelo bya ntolovelo eka projeke ya nkarhinyana. Dyondzo yi bumabumerile leswaku ku anakanyiwa rimba ro nyika mianakanyo yo sungula maendlelo yo tirhisa ABC.<br>Die “South African Social Security Agency” (SASSA) verlig armoede in Suid-Afrika deur ingevolge die “Social Security Agency Act” 9 van 2004 sosiale toelaes te betaal. Die aansienlike toename in die aantal begunstigdes het ʼn uitwerking op die administrasiekoste van sosiale toelaes. Hierdie studie ondersoek die toewysing van indirekte koste ten opsigte van die administratiewe elemente wat SASSA in staat stel om sosiale toelaes te betaal. Halfgestruktureerde onderhoude is gevoer. In hierdie studie word tot die gevolgtrekking gekom dat aktiwiteitsgebaseerde kosteberekening (ABK) as ʼn alternatief vir en as ʼn proefprojek die tradisionele kosteberamingsmetode geïmplementeer kan word. ʼn Raamwerk word aanbeveel wat as ʼn grondslag kan dien vir die implementering van ABK.<br>College of Accounting Sciences<br>M. Phil. (Accounting Sciences)

碩士<br>國立臺灣科技大學<br>財務金融研究所<br>106<br>The largest advantage of industrial competitiveness is effective control and handle of cost resources. Accurate cost information is required to help business operator to decide trend and make decision when business automation level is high and product line is complex. In the past, attribution of manufacture cost is mostly shared by single cost driver because ratio of direct labor and direct material is high in cost structure. This will led to torture of product cost. Activity-based costing system, which improves irrational facts in traditional cost system by investigating “cost target” (product, service and customer) toward “different level of operation demand” to evaluate cost (cause-effect relation and user-pays principle). This research adopts case study method. A domestic printing company is chosen as study target to investigate current cost system. Feasibility of the company to apply activity-based costing system is investigated by comparing differences after realizing current operation process and proposing an appropriated activity-based costing system. Disadvantages of current cost system are shown to be improved by research results. Cost distortion is reduced; ability of providing real-time and objective cost information and product price can be accurately defined. It is concluded that the studied company is suitable for adopting activity-based costing system.

碩士<br>國立臺南大學<br>科技管理研究所碩士班<br>99<br>Traditional costing approach allocates manufacturing overhead according to production weight (or machine hour, labor hour), and is likely to result in abnormality of distribution. Activity-based costing method can divide different activity centers and reflect real cost on the basis of real production process. Therefore, on the new circumstance of fierce competition, internationalization of enterprises and diversification of organizations, it is necessary for business managers to strengthen the operation management and enhance competitiveness by means of new management accounting concepts and techniques. Activity-based costing is widely applied on making the cost information accurate, improving production process, and providing perfect information for resource decision, product pricing and portfolio. Thus, this paper discusses the theory and calculation method of activity-based costing, and the difference between ABC and traditional costing method. It has been realized that the reduction of manufacturing cost is crucial for the operation of whole enterprise, and that by practicing activity-based costing the enterpriser can know the cost of all activities. This article explores the beverage manufacturing industry which applies activity-based costing at present. By in-depth interview with the major administrative staff, the author probes into the application of activity-based costing theory on cost management of beverage manufacturing industry. Through the deep analysis on the process of an enterprise introducing the activity-based costing, the author concludes that after the application of activity-based costing the cost structure of the company have changed; by using activity-based costing, it is possible to understand the composition of operating cost wholly, control the level of separate cost correctly and avoid distortion of cost structure. This research provides the example of introducing the ABC for other beverage manufactures.