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Year 2020, Volume: 5 Issue: 2, 174 - 192, 29.12.2020

Abstract

References

  • Cagwin, D. and Bouwman W. (2002), The Association Between Activity-Based Costing And Improvement in Financial Performance, Management Accounting Research, 13(1), 1-39.
  • Cardoş, I.R., Pete,S., (2011), Activity-based Costing (FTM) and Activitybased Management (ABM) Implementation – Is This the Solution for Organizations to Gain Profitability?, Romanian Journal of Economics, 2011, 32 (1(41)), 151-168.
  • CIMA (2001), Activity based management – An overview, Technical briefing
  • Cooper R. and Kaplan R.S. (1988), Measure Costs Right: Make The Right Decisions, Harvard Business Review, 66, 96-103.
  • Cooper R. And Kaplan, R.S. (1991), Profit Priorities From Activity-Based Costing, Harvard Business Review, 69(3), 130-135.
  • Cooper R. And Kaplan, R.S. (1992), Activity-Based Systems: Measuring the Costs of Resource Usage, Accounting Horizons, September, 1-12.
  • Geri, N. And Ronen, B. (2005), Relevance Lost, The Rise And Fall of Activity-Based Costing, Human Systems Management, 24, 133-144.
  • Goebel, D.J., Marshal, G.W. and Locandar, W.B., (1990), Accounting For A Market Orientation, Industrial Marketing Management, 27, 497-510.
  • Gupta, M. And Galloway, K. (2003), Activity Based Costing/Management And Its Implications For Operation Management, Technovation, 23, 131-138.
  • Hansen, D. And Mowen, M (2006). Cost Management: Accounting And Control, Thomson South-Western, 5th ed., USA.
  • Hansen, D.R., Mowen, M.M. and Guan, L. (2009), Cost Management: Accounting and Control, Cengage Learning, USA
  • Horngren, C.T., Srikant, M.D. And Rajan, M. (2012), Cost Accounting: A Managerial Emphasis, Prentice Hall, 14th ed.
  • Ittner, C.,D. (1999), Activity Based Costing Concepts for Quality Improvement, European Management Journal, 17(5), 492-500.
  • Kaplan, R.S. and Anderson, S.R. (2003), Time-Driven Activity-Based Costing, HBS Working Paper, No:04-45.
  • Kennedy, T. and Affleck-Grawes, J.(2001). The Impact Of Activity-Based Costing In Firm Performance, Journal of Management Accounting Research, 13(1), 19-45.
  • Lere, C.,J. (2000), Activity Based Costing: A Powerful Tool For Pricing, Journal of Business and Industrial Marketing, 15(1), 23-33.
  • Mak, Y.T and Roush, M.L. (1994), Flexible Budgeting and Variance Analysis in an Activity-Based Costing Environment, Accounting Horizons, Vol.8, No.2, pp.94-103.
  • Malcom, R. (1991), Overhead Control Implication of Activity Costing, Accounting Horizons, 5(4), 69-78.
  • Özbayrak, M. Akgün, M. and Türker, A.K. (2004), Activity-Based Cost Estimation in Pussh/Pull Advanced Manufacturing Systems, International Journal of Production Economics, 87, 49-65.
  • Pazarçeviren, S.Y. and Şahin, N.S. (2013). Activity-Based Direct Costing System in Determining Competitive Price, Vol.16, No.29, pp.243-259.
  • Plowman, B. (2001), Activity Based Management: Improving Process and Profitability, Gower Publishing Limited, USA.
  • Raab, C., Mayer, K. And Shoemaker, S. (2010), Menu Engineering Using Activity-Based Costing: An Exploratory Study Using A Profit Factor Comparison Approach, Journal of Hospitality & Tourism Research, Vol.34, No.2, 204-224.
  • Raab, C. And Zemke, D.M. (2016), Activity Based Costing In The Restaurant Industry: What’s Past Is Prologue, The Journal of Hospitality Financial Management, Vol.24, No.2, pp.133-146.
  • Sarı, E.S. and Ülker, S.M. (2016), Variance Analyses In An Activitiy-Based Costing Environment And Its Application In A Manufacturing Company, Eurasian Business & Economics Journal, Vol.7, 32-49.
  • Stratton, W.O., Desroches, D., Lawson, R.A. and Hatch, T. (2009), Activity-Based Costing: Is It Still Relevant?, Management Accounting Quarterly, 10(3), 31-40.

IMPLEMENTATION OF ACTIVITY-BASED COSTING AND ACTIVITY-BASED VARIANCE ANALYSIS IN FOOD INDUSTRY

Year 2020, Volume: 5 Issue: 2, 174 - 192, 29.12.2020

Abstract

Activity based costing assings overheads to products with convenient drivers and makes costs of products visible on activities level. Activity based variance analysis approaches reveals variances on product and activity level. Activity Based Costing and Activitiy based variance analysis are tools methods for continuous improvement and cost management.
Study aims to apply activity-based costing and activity-based variance analysis in food industry. First stage covers observation and data collection period. Implementation preiod starts with activity-based budgeting process. Than, overheads assigned to products following activity-based costing steps than using activity-based variance analysis approaches variances are calculated. Activity-based costing implementation results provided evidence that overheads consist important part of food costs. Activity-based variance analysis results revealed that variances on activity and product level.

References

  • Cagwin, D. and Bouwman W. (2002), The Association Between Activity-Based Costing And Improvement in Financial Performance, Management Accounting Research, 13(1), 1-39.
  • Cardoş, I.R., Pete,S., (2011), Activity-based Costing (FTM) and Activitybased Management (ABM) Implementation – Is This the Solution for Organizations to Gain Profitability?, Romanian Journal of Economics, 2011, 32 (1(41)), 151-168.
  • CIMA (2001), Activity based management – An overview, Technical briefing
  • Cooper R. and Kaplan R.S. (1988), Measure Costs Right: Make The Right Decisions, Harvard Business Review, 66, 96-103.
  • Cooper R. And Kaplan, R.S. (1991), Profit Priorities From Activity-Based Costing, Harvard Business Review, 69(3), 130-135.
  • Cooper R. And Kaplan, R.S. (1992), Activity-Based Systems: Measuring the Costs of Resource Usage, Accounting Horizons, September, 1-12.
  • Geri, N. And Ronen, B. (2005), Relevance Lost, The Rise And Fall of Activity-Based Costing, Human Systems Management, 24, 133-144.
  • Goebel, D.J., Marshal, G.W. and Locandar, W.B., (1990), Accounting For A Market Orientation, Industrial Marketing Management, 27, 497-510.
  • Gupta, M. And Galloway, K. (2003), Activity Based Costing/Management And Its Implications For Operation Management, Technovation, 23, 131-138.
  • Hansen, D. And Mowen, M (2006). Cost Management: Accounting And Control, Thomson South-Western, 5th ed., USA.
  • Hansen, D.R., Mowen, M.M. and Guan, L. (2009), Cost Management: Accounting and Control, Cengage Learning, USA
  • Horngren, C.T., Srikant, M.D. And Rajan, M. (2012), Cost Accounting: A Managerial Emphasis, Prentice Hall, 14th ed.
  • Ittner, C.,D. (1999), Activity Based Costing Concepts for Quality Improvement, European Management Journal, 17(5), 492-500.
  • Kaplan, R.S. and Anderson, S.R. (2003), Time-Driven Activity-Based Costing, HBS Working Paper, No:04-45.
  • Kennedy, T. and Affleck-Grawes, J.(2001). The Impact Of Activity-Based Costing In Firm Performance, Journal of Management Accounting Research, 13(1), 19-45.
  • Lere, C.,J. (2000), Activity Based Costing: A Powerful Tool For Pricing, Journal of Business and Industrial Marketing, 15(1), 23-33.
  • Mak, Y.T and Roush, M.L. (1994), Flexible Budgeting and Variance Analysis in an Activity-Based Costing Environment, Accounting Horizons, Vol.8, No.2, pp.94-103.
  • Malcom, R. (1991), Overhead Control Implication of Activity Costing, Accounting Horizons, 5(4), 69-78.
  • Özbayrak, M. Akgün, M. and Türker, A.K. (2004), Activity-Based Cost Estimation in Pussh/Pull Advanced Manufacturing Systems, International Journal of Production Economics, 87, 49-65.
  • Pazarçeviren, S.Y. and Şahin, N.S. (2013). Activity-Based Direct Costing System in Determining Competitive Price, Vol.16, No.29, pp.243-259.
  • Plowman, B. (2001), Activity Based Management: Improving Process and Profitability, Gower Publishing Limited, USA.
  • Raab, C., Mayer, K. And Shoemaker, S. (2010), Menu Engineering Using Activity-Based Costing: An Exploratory Study Using A Profit Factor Comparison Approach, Journal of Hospitality & Tourism Research, Vol.34, No.2, 204-224.
  • Raab, C. And Zemke, D.M. (2016), Activity Based Costing In The Restaurant Industry: What’s Past Is Prologue, The Journal of Hospitality Financial Management, Vol.24, No.2, pp.133-146.
  • Sarı, E.S. and Ülker, S.M. (2016), Variance Analyses In An Activitiy-Based Costing Environment And Its Application In A Manufacturing Company, Eurasian Business & Economics Journal, Vol.7, 32-49.
  • Stratton, W.O., Desroches, D., Lawson, R.A. and Hatch, T. (2009), Activity-Based Costing: Is It Still Relevant?, Management Accounting Quarterly, 10(3), 31-40.
There are 25 citations in total.

Details

Primary Language English
Subjects Business Administration
Journal Section Articles
Authors

Zeliha Kaldırım 0000-0002-7514-1006

Yusuf Kaldırım 0000-0002-9725-7069

Publication Date December 29, 2020
Submission Date September 1, 2020
Acceptance Date December 21, 2020
Published in Issue Year 2020 Volume: 5 Issue: 2

Cite

APA Kaldırım, Z., & Kaldırım, Y. (2020). IMPLEMENTATION OF ACTIVITY-BASED COSTING AND ACTIVITY-BASED VARIANCE ANALYSIS IN FOOD INDUSTRY. Journal of Research in Business, 5(2), 174-192.