{"product_id":"activity-based-costing-and-its-later-development-into-activity-based-budgeting-and-management-von-david-wagener","title":"Activity-Based costing and its later development into activity based budgeting and management","description":"\u003cp\u003eSeminar paper from the year 2008 in the subject Business economics - Accounting and Taxes, grade: 1.3, University of the West of England, Bristol (Bristol Business School (University of the West of England)), course: Internes Rechnungswesen\/ Management Accounting, language: English, abstract: Every accounting student of the past sixty years has learned about inventory costing- a bookkeeping procedure\u003c\/p\u003e\u003cp\u003ethat manufacturing accountants follow to separate the production expense of an accounting period from the cost\u003c\/p\u003e\u003cp\u003eof manufactured product inventories at the end of the period.\u003c\/p\u003e\u003cp\u003e(Johnson and Kaplan, 1991, p. 130)\u003c\/p\u003e\u003cp\u003eThis technique of valuing inventory should, although often practiced, not be used for managerial\u003c\/p\u003e\u003cp\u003edecision making though. It oversimplifies the consumption of overhead costs by\u003c\/p\u003e\u003cp\u003eproducts, services and customers and therefore leads to distorted cost information.\u003c\/p\u003e\u003cp\u003eActivity-based costing (ABC), developed by single manufacturing firms in the early 1980s,\u003c\/p\u003e\u003cp\u003eseems to provide more reliable information. The second part of this work describes the\u003c\/p\u003e\u003cp\u003econcept of ABC by summarizing the arguments of two pioneers in this field. In their book\u003c\/p\u003e\u003cp\u003e¿Relevance Lost: The Rise and Fall of Management Accounting¿, first published in 1987, H.\u003c\/p\u003e\u003cp\u003eThomas Johnson and Robert S. Kaplan (1991) examine the traditions of management accountting\u003c\/p\u003e\u003cp\u003eand describe possible improvements. In part three the developments of ABC in the last 20\u003c\/p\u003e\u003cp\u003eyears are described by reviewing a choice of important literature. Part four then shows the\u003c\/p\u003e\u003cp\u003eimpact that ABC had on implementing companies. The conclusion, part five, contains an\u003c\/p\u003e\u003cp\u003eassessment of the used literature and an evaluation of whether the critic of traditional\u003c\/p\u003e\u003cp\u003emanagement accounting has been overcome by ABC.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783640586622\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Libri","offers":[{"title":"Softcover - 9783640586622","offer_id":39422850334813,"sku":"9783640586622","price":17.95,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/beef588d-a8ea-45bc-b4b6-9270f9d2cc13.jpg?v=1777696061","url":"https:\/\/shop.autorenwelt.de\/en\/products\/activity-based-costing-and-its-later-development-into-activity-based-budgeting-and-management-von-david-wagener","provider":"Autorenwelt Shop","version":"1.0","type":"link"}