Application of activity-based costing for ball bearing manufacturing
Date Issued
2007
Date
2007
Author(s)
Yang, Shang-Shu
DOI
zh-TW
Abstract
Taiwan bearing industries are facing the international competition in recent years, the only thing that Taiwan bearing industries can do to compete other international name brands is to reduce the manufacturing costs. Therefore, the enterprises need an accurate costing system to measure costs. But, as the environment changes, the traditional costing system cannot satisfy enterprises anymore. The enterprises need one costing system which is much more accurate and efficient than traditional costing system.
Activity-Based Costing(ABC) can solve the upper mentioned problems. ABC includes 2 stages: The first stage is to attribute resources into related activities, then become cost pool ;the second stage is attribute activity drivers into outputs. Outputs here means products,services or customers in ABC. ABC classifies costs by 4 different levels, which are unit level,batch level,product sustained and facility sustained. When completing ABC module, the enterprises have to use Activity-Based Management(ABM) to execute published prices of products,manufacturing plans and budget management, etc…some important decisions to achieve the purpose of using the lowest cost to create the highest profit, most of all, make enterprises competitive.
This study includes 2 stages: The first stage is to implement ABC in a real bearing factory, realize how products’ costs differ by industrial characteristics,manufacturing process and attributions of manufacturing costs；The second stage is to analyze the ABC costing to sure the ABC costs are reasonable and improve the unreasonable costs, to achieve the ABM purpose.
From the result of this study, knowing that most of the bearing cost is in the unit and batch level and after analyzing the cost, the result reveals that maybe the labor cost can be improve, this study then designs a process to improve that cost.
Subjects
滾珠軸承
作業基礎成本制度
作業基礎管理
Ball bearings
Activity-Based Costing
Activity-BasedManagement
Traditional costing system
Type
thesis