Integrating Activity-Based Costing And Economic Value Added In Manufacturing

Topics:
Strategic Management Tools
Tags:
Activity Based Costing,
Economic Value Added,
Economic Value-Added Analysis,
Finance,
Managerial Accounting,
Manufacturing
Source:
State University of New York at New Paltz

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Overview: Activity Based Costing (ABC) system traces cost incurred to the activities involved therein. It explores the relationship between activities and costs. ABC refines costing systems by focusing on individual activities as the fundamental cost object. It assigns costs to cost objects based on the activities undertaken to produce each product or service. Economic Value Added (EVA) is the monetary value of an entity at the end of a time period minus the monetary value of that same entity at the beginning of that time period. EVA is a tool that measures how much more valuable a company has become during a given time period. The paper presents a cost and performance measurement system that integrates ABC with EVA financial performance measure.

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Format: PDF | Size: 69KB | Date: Jan 2003 | Pages: 8

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