Abstract
After completing this chapter, you should be able to:
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Explain the limitations of traditional costing systems;
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Describe the difference between activity-based and traditional costing systems;
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Compute product costs using an activity-based system;
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Describe the four different categories of activities listed on pages 279–80;
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Explain the activity-based profitability analysis approach;
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Describe how the activity-based approach differs from the decision-relevant approach.
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References and Further Reading
Cooper, R. (1989) The rise of activity-based costing — Part 4: What do activity-based costing systems look like?, Journal of Cost Management (USA), Spring, 41–2.
Cooper, R. (1990a) A structured approach to implementing ABC, Accountancy, June, 78–80.
Cooper, R. (1990b) Cost classification in unit-based and activity-based manufacturing cost systems, Journal of Cost Management (USA), Fall, 4–13.
Cooper, R. (1990c) ABC: A need, not an option, Accountancy, September, 86–8.
Cooper, R. (1990d) Five steps to ABC system design, Accountancy, November, 78–81.
Cooper, R. (1990e) Explicating the logic of ABC, Management Accounting, November, 58–60.
Cooper, R. (1991) ABC: The right approach for you? Accountancy, January, 70–2.
Cooper, R. and Kaplan, R.S. (1988) Measure costs right: make the right decisions, Harvard Business Review, September/October, 96–103.
Cooper, R. and Kaplan, R.S. (1991) The Design of Cost Management Systems: Text, Cases and Readings, Prentice-Hall, Ch. 5.
Drury, C., Braund, S., Osborne, P. and Tayles, M. (1992) A Survey of Management Accounting Practices in UK Manufacturing Companies, ACCA Research Occasional Paper. Chartered Association of Certified Accountants.
Holzer, H.P. and Norreklit, H. (1991) Some thoughts on cost accounting developments in the UK, Journal of Management Accounting Research (UK), March, 3–13.
Innes, J. and Mitchell, F. (1990) Activity-Based Costing: A Review with Case Studies,Chartered Institute of Management Accountants.
Kaplan, R.S. (1990) Contribution margin analysis: no longer relevant, Journal of Management Accounting Research (USA), Fall, 2–15.
Piper, J.A. and Walley, P. (1990) Testing ABC logic, Management Accounting, September, 37, 42.
Piper, J.A. and Walley, P. (1991) ABC relevance not found, Management Accounting, March, 42–4, 54.
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© 1992 J.C. Drury
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Drury, C. (1992). Activity-based costing. In: Management and Cost Accounting. Springer, Boston, MA. https://doi.org/10.1007/978-1-4899-6828-9_11
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DOI: https://doi.org/10.1007/978-1-4899-6828-9_11
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