Accounting

Activity-Based Costing and Management (Portfolio 5306)

  • Activity-Based Costing and Management, explains activity-based costing (ABC) and shows how it can provide useful information to help management improve organizational performance.

Description

Bloomberg Tax & Accounting Portfolio No. 5306, Activity-Based Costing and Management explains activity-based costing (ABC) and shows how it can provide useful information to help management improve organizational performance. Determining the cost of resources used for carrying out activities and assigning that cost to the products and other cost centers falls within the area of cost accounting. ABC is the method preferred by many companies in the modern environment, and one of the purposes of this Portfolio is to help potential users understand this system. Other aspects of activity analysis are used for various managerial purposes, including planning, controlling, and decision making. The best and most beneficial use of activity analysis is to combine the cost and other information provided by ABC with managerial functions; this is then referred to as activity-based management (ABM). This Portfolio explores many such managerial practices.

The Portfolio also analyzes the differences between ABC and generally accepted accounting principles (GAAP) in the areas of product costs and segment analysis. It shows how a company using ABC can prepare external reports under GAAP without compromising the principles of ABC for internal purposes.

This Portfolio may be cited as Bloomberg Tax & Accounting Portfolio 5306, Agrawal, Brimson, & Gupta, Activity-Based Costing and Management.

Table of Contents

I. Purpose and Scope of Portfolio
II. Basic Principles of ABC and Transforming the Management Information Process
III. Activity Analysis and Costing for Manufacturing Organizations: Basic Principles
IV. Cost of Unused Capacity
V. Analysis Of Non-Manufacturing Activities
VI. Service Organizations
VII. Profitability Analysis
VIII. Management Initiatives, Part 1: Continuous Improvement and JIT
IX. Performance Measurement and Quality Management
X. Theory of Constraints, Optimization, and Target Costing
XI. Planning, Control, and Decision Making
XII. Implementing ABC – A Roadmap
XIII. External Reporting

Surendra Agrawal headshot
Surendra Agrawal
Professor
University of Memphis
brimson-james-2015
James Brimson
Adjunct Professor
Southern Methodist University, Cox
Mukul Gupta headshot
Mukul Gupta
CPA, Financial Executive
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