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JAMAR Vol. 7 · Number 2 · 2009 Recognition of Idle Resources in Time-Driven Activity-Based Costing and Resource Consumption chronicle Models Michael S.C. Tse* Maleen Z. Gong** rent Despite its theoretical superiority over handed-down volume-based follow models, the Activity-Based Costing (ABC) modelhas failed to replace tralatitious volume-based be models in to the highest pointedness organizations. In response to the problems of the model, Time-Driven Activity-Based Costing (TDABC) and Resource Consumption news report (RCA) models have been developed as cost models for next supplement cost management systems. A key feature that distinguishes TDABC and RCA models from traditional volume-based costing models and the ABC model is the recognition of stagnant resources in resource pools. This paper presents a discussion on implications of recognising unoccupied resources in TDABC and RCA models on developments, maintenance and utilizations of cost management syst ems. A hypothetical case is presented to illustrate conversions of an ABC-based costing model to ones that be based on the TDABC and RCA models, and the resulting new allocation of resource costs. foot shrewd and maintaining effective cost management systems is a primordial line for management accountants.

In recent decades, advances in randomness engineering science have brought significant improvements to the collection and dialogue of cost data in organisations. Unfortunately, traditional volume-based costing models (absorption costing and variable costing) do not make good use of available data. These costing models are based on change assump! tions of cost behaviour, and are designed to cope with limited availableness of data (Cooper and Kaplan, 1988). They employment well when organisations operate in a stable environs with low variability in outputs. As the complexity of an organisations operations increases, weaknesses of these costing models commence more spare (Cooper, 1987; Drury, 1990). The Rise and Fall of...If you want to buy the farm a safe essay, order it on our website: BestEssayCheap.com

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