Skip to main content

Applying Activity-Based Costing (ABC) to a Parawood Furniture Factory

Buy Article:

$55.00 plus tax (Refund Policy)

This article examines the implementation of activity-based costing (ABC) in a parawood furniture factory. It is a preliminary study describing the differences between the traditional and the ABC cost systems. Five products with the highest sale values were selected for this research. There were four main steps in accomplishing this research. First, the product, process, and current cost system were studied and analyzed. Second, an appropriate ABC model was developed and implemented at the factory. Third, a comparison between the current costing system and the ABC system was made. Finally, benefits and obstacles in the application of ABC system were discussed. The findings indicated that the costs under the traditional cost system were different from those computed using the ABC system. It allows the creation of a costing system that provides management with reliable cost information. It would be an important aid in making management decisions, particularly for improving pricing practices by making costing more accurate.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Data/Media
No Metrics

Document Type: Research Article

Affiliations: 1: Faculty of Engineering, Department of Industrial Engineering, Prince of Songkla University, Songkhla, Thailand 2: Faculty of Agro-Industry, Department of Agro-Industry Technology Management, Prince of Songkla University, Hat Yai, Songkhla, Thailand

Publication date: 2011-01-01

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more