Recognition of idle resources in time-driven activity-based costing and resource consumption accounting models
Tse, Michael and Gong, Maleen 2009, Recognition of idle resources in time-driven activity-based costing and resource consumption accounting models, Journal of applied management accounting research, vol. 7, no. 2, pp. 41-54.
Despite its theoretical superiority over traditional volume-based costing models, the Activity-Based Costing (ABC) model has failed to replace traditional volume-based costing models in most organisations. In response to the problems of the model, Time-Driven Activity-Based Costing (TDABC) and Resource Consumption Accounting (RCA) models have been developed as costing models for next generation cost management systems. A key feature that distinguishes TDABC and RCA models from traditional volume-based costing models and the ABC model is the recognition of idle resources in resource pools.
This paper presents a discussion on implications of recognising idle resources in TDABC and RCA models on developments, maintenance and uses of cost management systems. A hypothetical case is presented to illustrate conversions of an ABC-based costing model to ones that are based on the TDABC and RCA models, and the resulting new allocation of resource costs.
Language
eng
Field of Research
150105 Management Accounting
Socio Economic Objective
970115 Expanding Knowledge in Commerce, Management, Tourism and Services
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Every reasonable effort has been made to ensure that permission has been obtained for items included in DRO. If you believe that your rights have been infringed by this repository, please contact drosupport@deakin.edu.au.