Combining Activity‐based Costing and Process Mapping: A Practical Study

Abstract

Traditional costing systems suffer from a number of problems because of the way in which they allocate overheads: product costs have arbitrary components; managers lack information about what causes costs to be incurred; and it becomes impossible to know which of several product lines is the most profitable. Describes a case study in which activity‐based costing and process mapping were applied in combination in an engineering firm, where it was found that it was necessary to specify a method of process‐based costing.

Citation

Amsler, B.M., Busby, J.S. and Williams, G.M. (1993), "Combining Activity‐based Costing and Process Mapping: A Practical Study", Integrated Manufacturing Systems, Vol. 4 No. 4, pp. 10-17. https://doi.org/10.1108/09576069310044619