A Comparative Analysis and Implementation of Activity Based Costing (ABC) and Traditional Cost Accounting (TCA) Methods in an Automobile Parts Manufacturing Company: A Case Study

NITIN KUMAR

A Comparative Analysis and Implementation of Activity Based Costing (ABC) and Traditional Cost Accounting (TCA) Methods in an Automobile Parts Manufacturing Company: A Case Study

NITIN KUMAR * §

Contact

§ GREEN HILLS ENGINEERING COLLEGE (SOLAN)

A Comparative Analysis and Implementation of Activity Based Costing (ABC) and Traditional Cost Accounting (TCA) Methods in an Automobile Parts Manufacturing Company: A Case Study

Article Fingerprint

ReserarchID

MBR0O6ZA

Key Research Insights

Synthesized scholarly intelligence & interactive research assistant

This converted HTML version may contain rendering inconsistencies. Please refer to the PDF for the authoritative version, or click here to provide feedback.

Abstract

Activity based costing (ABC) is a method for determining true costs; which has become an important aspect of manufacturing/service organizations and can be defined as a methodology that measures the cost and performance of activities, resources and cost objects. It can be considered as an alternative method to traditional cost accounting systems. In this paper we have shown a comparative analysis of application of ABC method with traditional cost accounting (TCA) method in an automobile parts manufacturing company; which would like to increase the sales due to increased demand. For this reason the company needs to know the true cost of the parts prior to deciding as which item is to be produced more.

References

11 Cites in Article

Reference Format

Ugo Ibusuki,Paulo Kaminski (2007). Product development process with focus on value engineering and target-costing: A case study in an automotive company.
Peter Berling (2008). Holding cost determination: An activity-based cost approach.
Adil Baykasog˘lu,Vahitkaplanog˘lu (2008). Application of activity-based costing to a land transportation company: A case study.
Tiago Pascoal,Filomena,Francisco Jose´ Kliemann,Michael Neto,Robert Duffey (2009). Target costing operationalization during part development: Model and Int.
A Gunasekaran,M Sarhadi (1998). Implementation of activity-based costing in manufacturing.
Michael Johnson,Randolph Kirchain (2009). Quantifying the effects of parts consolidation and development costs on material selection decisions: A process-based costing approach.
I Tatsiopoulos,N Panayiotou (2000). The integration of activity based costing and enterprise modeling for reengineering purposes.
A Gunasekaran,D Singh (1999). Design of activity-based costing in a small company: A case study.
James Shannon W Anderson,S Hesford,Young (2002). Factors influencing the performance of activity based costing teams: a field study of ABC model development time in the automobile industry.
Michael Briers,Wai Fong Chua (2001). The role of actornetworks and boundary objects in management accounting change: a field study of an implementation of activity-based costing.
Stephan Langmaak,Stephen Wiseall,Christophe Bru,Russell Adkins,James Scanlan,András Sóbester (2013). An activity-based-parametric hybrid cost model to estimate the unit cost of a novel gas turbine component.

Download References

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

NITIN KUMAR. 2013. "A Comparative Analysis and Implementation of Activity Based Costing (ABC) and Traditional Cost Accounting (TCA) Methods in an Automobile Parts Manufacturing Company: A Case Study". Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 13 (GJMBR Volume 13 Issue D4).

More Citation Formats

Select Citation Style:

Download Citation

GJMBR Volume 13 Issue D4

Explore Journals Explore Volume Read This Issue

Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

activity based costing cost drivers traditional cost accounting

Classification

GJMBR-D Classification JEL Code: M00

Submission ReceivedDecember 14, 2012
Peer Review Double Blind
Handling Editor
Accepted January 2, 2013
Published January 15, 2013

Version of record

v1.2

Issue date

August 6, 2013

Language

English

Experiance in AR

Explore published articles in an immersive Augmented Reality environment. Our platform converts research papers into interactive 3D books, allowing readers to view and interact with content using AR and VR compatible devices.

View in VR

Read in 3D

Your published article is automatically converted into a realistic 3D book. Flip through pages and read research papers in a more engaging and interactive format.

View in 3D

Article Matrices

Total Score: 148

Country: India

Subject: Global Journal of Management and Business Research

Authors: Nitin Kumar & Dalgobind Mahto (PhD/Dr. count: 0)

View Count (all-time): 380

Total Views (Real + Logic): 1386

Total Downloads (simulated): 75

Publish Date: 2013 01, Tue

Monthly Totals (Real + Logic):

Month 1: 55 views
Month 2: 58 views
Month 3: 31 views
Month 4: 33 views
Month 5: 47 views
Month 6: 49 views
Month 7: 37 views
Month 8: 44 views
Month 9: 30 views
Month 10: 32 views
Month 11: 33 views
Month 12: 36 views
Month 13: 36 views
Month 14: 26 views
Month 15: 14 views
Month 16: 44 views
Month 17: 31 views
Month 18: 23 views
Month 19: 34 views
Month 20: 32 views
Month 21: 15 views
Month 22: 35 views
Month 23: 47 views
Month 24: 35 views
Month 25: 35 views
Month 26: 29 views
Month 27: 37 views
Month 28: 26 views
Month 29: 34 views
Month 30: 39 views
Month 31: 47 views
Month 32: 47 views
Month 33: 27 views
Month 34: 19 views
Month 35: 47 views
Month 36: 24 views
Month 37: 29 views
Month 38: 46 views
Month 39: 44 views
Month 40: 22 views
Month 41: 29 views
Month 42: 29 views
Month 43: 46 views
Month 44: 43 views
Month 45: 27 views
Month 46: 29 views
Month 47: 30 views
Month 48: 40 views
Month 49: 28 views
Month 50: 34 views
Month 51: 17 views
Month 52: 26 views
Month 53: 16 views
Month 54: 21 views
Month 55: 27 views
Month 56: 26 views
Month 57: 26 views
Month 58: 30 views
Month 59: 34 views
Month 60: 35 views
Month 61: 18 views
Month 62: 28 views
Month 63: 26 views
Month 64: 31 views
Month 65: 49 views
Month 66: 38 views
Month 67: 24 views
Month 68: 27 views
Month 69: 43 views
Month 70: 21 views
Month 71: 20 views
Month 72: 15 views
Month 73: 21 views
Month 74: 39 views
Month 75: 27 views
Month 76: 39 views
Month 77: 31 views
Month 78: 13 views
Month 79: 24 views
Month 80: 29 views
Month 81: 32 views
Month 82: 29 views
Month 83: 41 views
Month 84: 22 views
Month 85: 44 views
Month 86: 33 views
Month 87: 31 views
Month 88: 40 views
Month 89: 41 views
Month 90: 20 views
Month 91: 27 views
Month 92: 32 views
Month 93: 28 views
Month 94: 24 views
Month 95: 32 views
Month 96: 39 views
Month 97: 28 views
Month 98: 26 views
Month 99: 21 views
Month 100: 33 views
Month 101: 25 views
Month 102: 26 views
Month 103: 25 views
Month 104: 21 views
Month 105: 17 views
Month 106: 14 views
Month 107: 19 views
Month 108: 45 views
Month 109: 27 views
Month 110: 15 views
Month 111: 26 views
Month 112: 46 views
Month 113: 37 views
Month 114: 22 views
Month 115: 21 views
Month 116: 17 views
Month 117: 46 views
Month 118: 32 views
Month 119: 22 views
Month 120: 40 views
Month 121: 16 views
Month 122: 24 views
Month 123: 28 views
Month 124: 32 views
Month 125: 23 views
Month 126: 46 views
Month 127: 20 views
Month 128: 39 views
Month 129: 37 views
Month 130: 34 views
Month 131: 37 views
Month 132: 16 views
Month 133: 37 views
Month 134: 40 views
Month 135: 18 views
Month 136: 20 views
Month 137: 30 views
Month 138: 35 views
Month 139: 41 views
Month 140: 33 views
Month 141: 37 views
Month 142: 37 views
Month 143: 32 views
Month 144: 43 views
Month 145: 17 views
Month 146: 26 views
Month 147: 41 views
Month 148: 42 views
Month 149: 41 views
Month 150: 42 views
Month 151: 53 views
Month 152: 38 views
Month 153: 48 views
Month 154: 63 views
Month 155: 57 views
Month 156: 40 views
Month 157: 11 views
Month 158: 26 views
Month 159: 33 views
Month 160: 36 views
Month 161: 34 views
Month 162: 27 views
Month 163: 49 views
Month 164: 49 views
Month 165: 45 views

Total Views: 1.4K

Total Downloads: 75

All Trends