An Integrated Activity-Based Costing And Economic Value Added System As An Engineering Management Tool For Manufacturers

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

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Overview: From the executive summary: ‘The paper presents a cost and performance measurement system that integrates the Activity Based Costing (ABC) method and the Economic Value Added (EVA) financial performance measure tool. This proposed ABC and EVA system is then explored as an engineering management tool that helps to successfully manage cost and capital. Such a tool allows enterprise leaders to create shareholder value through cost structure improvement. As opposed to a traditional ABC system, in the ABC and EVA system the cost of activities also includes the capital demand, apart from rate of consumption of resources. The paper also compares and contrasts a traditional ABC system and the ABC and EVA system’.

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Format: PDF | Size: 72KB | Date: Jan 2003 | Pages: 8

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