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 Portfolio No. 5306, Activity-Based Costing and Management (Accounting Policy and Practice Series), 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 Portfolio 5306, Agrawal and Brimson, Activity-Based Costing and Management (Accounting Policy and Practice Series).

Table of Contents

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

Surendra Agrawal
Professor
University of Memphis
brimson-james-2015
James Brimson
Adjunct Professor
Southern Methodist University, Cox
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