Model of an ABC costing system in scenarios of uncertainty
DOI:
https://doi.org/10.18041/1657-2815/libreempresa.2014v11n1.3019Keywords:
Cost Activity cost-driver, probability, simulation Monte CarloAbstract
This article presents the results of research into the development of a model of ABC costs in the presence of uncertainty, a fundamental step in the development and implementation of a cost system ABC is the definition of activities in the production process and the respective inducers (cost-drivers) for assignment. Since the whole process is undeniable the presence of uncertainty, defined as the situation where no probability of occurrence of a certain event is not fully understood, different probability distributions are used to model the probability of occurrence that can have any cost element, then the model used is made in six steps. The effect of uncertainty about obtaining cost is analyzed using Monte Carlo simulation, the software used in the implementation allows for basic statistics for each cost element. The results show the probability distribution of each of the cost elements, sensitivity analysis for optimization of cost and different statistical graphics needed for the analysis and conclusions.
Downloads
References
2. Bras, B.; Emblemsvag, J.Use of activity-based costing,uncertainty, and disassembly action charts in demanufacture cost assessments; 21st Annu. Des. Autom. Conf. Am. Soc. Mech. Eng. 1995, 82 (1), 285-292
3. Chan S. Park, Gyu-Tai Kim (1995). An economic evaluation model for advanced manufacturing systems using activity-based costing. Journal of Manufacturing Systems, 14, 6.pp. 439–451. (January 01, 1995).
4. Cooper, R., Kaplan, R.S., 1988. How cost accounting distorts production costs. Management Accounting 69 (10), 20–27.
5. Cooper, R., Kaplan, R.S., Maisel, L.S., Morrissey, E., Oehm, R.M., 1992. Implementing Activity- Based Cost Management. Irwin, Burr Ridge, IL.
6. Emblemsvag, J. (2003). Life-cycle costing: using activity-based costing and monte carlo methods to manage future costs and risk. New York: John Wiley & Sons.
7. Halpin, D„ and Riggs, L. (1992). Planning and analysis o f construction operations. John Wiley & Sons, Inc., New York, N.Y.
8. Helberg, C., Galletly, J.E., & Bicheno, J.R. (1994). Simulating activity-based costing. Industrial Management & Data Systems, 94(9), 3-8. doi:10.1108/02635579410072126
9. Mangan, T.N. (1995). Integrating an activity-based cost system. Cost Management, Winter 1995, 5-13.
10. Malik, S.A., & Sullivan, W.G. (1995). Impact of abc information on product mix and costing decisions. IEEE Transactions on Engineering Management, 42, 171-176. doi:10.1109/17.387268
11. Maxwell, Donald A. W. Back, Edward and Toon Jeffery Optimization of Crew Configurations Using Activity -Based Costing By
12. Özbayrak, M., Akgün, M., & Türker, A.K. (2004). Activity-based cost estimation in a push/pull advanced manufacturing system. International Journal of Production Economics, 87(1), 49-65. doi:10.1016/S0925-5273(03)00067-7
13. Sánchez M., Ximena. & Millán S, Julio C. Propuesta para la implementación del costeo ABC en microempresas. Libre Empresa, (Junio 2010). Vol.7 No.1. p .107-119.
14. Spedding, T.A., & Sun, G.Q. (1999). Application of discrete event simulation to the activity based costing of manufacturing systems. International Journal of Production Economics, 58(3), 289-301. doi:10.1016/S0925-5273(98)00204-7
