Knowledge of the historical development of activity-based costing
is important in order to clearly understand what ABC analysis was originally intended to accomplish.
Both of the models adapt Activity-based Costing
systems or techniques.
is a cost accounting concept based on the premise that products (and/or services) require an organization to perform activities and that those activities require an organization to incur costs.
Based on the call for changes in Relevance Lost, Kaplan and Cooper developed the concepts and principles of activity-based costing
(ABC), wrote teaching cases about ABC initiatives, used them in their MBA classes, and later helped companies implement ABC.
One must be cautious about approaching value-based medicine through the lens of time-driven activity-based costing
, which has some limitations.
reports all the costs of a product or service until the customer actually buys the product, and provides the foundation for integrating cost and value into one analysis.
* Source: Anne-Marie Lelkes, Simplifying Activity-Based Costing
, dissertation, Oklahoma State University, December 2009; Anne-Marie Lelkes and Donald Deis, "Using the Production Cycle Time to Reduce the Complexity of Activity-Based Costing
Systems," Journal of Theoretical Accounting Research, October 2013, pp.
is one of strategic management accounting techniques and it is an important management accounting innovation for well over a decade (Innes et al.
As Kaplan and Anderson (2004, 2007) and Namazi (2009, 2016a, 2016b) extensively pointed out, a major impute for the emergence of the time-driven activity-based costing
(TDABC) and performance-based activity-based costing
(PFABC), as the second and third generations of the ABC, relates to the awareness of the companies about the ABC weaknesses.
Future researches should include measuring the impact of activity-based costing
on their firm performance either through a case study or to examine the relationship between influences of cost accounting standards, practices and technological factors related with adoption of an activity-based costing
(ABC) is a simple and concise method to represent activities involved in a process.