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

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 sharma

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Nitin Kumar & Dalgobind Mahto

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Himachal Pradesh University

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

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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

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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

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How to Cite This Article

nitin sharma. 2013. \u201cA Comparative Analysis and Implementation of Activity Based Costing (ABC) and Traditional Cost Accounting (TCA) Methods in an Automobile Parts Manufacturing Company: A Case Study\u201d. Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 13 (GJMBR Volume 13 Issue D4).

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GJMBR Volume 13 Issue D4

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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

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

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v1.2

Issue date

August 6, 2013

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Article Matrices

Total Score: 101

Country: India

Subject: Global Journal of Management and Business Research - D: Accounting & Auditing

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

View Count (all-time): 180

Total Views (Real + Logic): 5000

Total Downloads (simulated): 2544

Publish Date: 2013 08, Tue

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Total Views: 5000

Total Downloads: 2544

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