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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** withdraw Despite its theoretical superiority over handed-down volume-based represent models, the Activity-Based Costing (ABC) modelhas failed to replace conventional volume-based be models in to the highest point in time organizations. In response to the problems of the model, Time-Driven Activity-Based Costing (TDABC) and Resource Consumption account (RCA) models have been developed as cost models for next source 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 laze resources in TDABC and RCA models on developments, maintenance and intents of cost management systems. A hypo thetical 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. design shrewd and maintaining effective cost management systems is a aboriginal line for management accountants.

In recent decades, advances in education engineering science have brought significant improvements to the collection and chat 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 model s are based on simplify assumptions 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 pop off more spare (Cooper, 1987; Drury, 1990). The Rise and Fall of...If you want to follow a safe essay, order it on our website: BestEssayCheap.com

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