Profitability Analyses Using Activity-Based Costing -- A Case Study on A Paints Company
Date Issued
2007
Date
2007
Author(s)
Tsai, Tin Shuei
DOI
zh-TW
Abstract
With the irreversible tides of globalization and de-regulation in the contemporary world, the small and medium enterprises of Taiwan are facing neck-breaking speed of changes and competitions, such as technology changes, price competition, changing customer preference, higher service requirements, and etc. Under this new environment, whether the managements of these small and medium enterprises can obtain accurate cost information of their products and services as well as understand the profitability of their products and distribution channels, and eventually improve the overall profitability of the company are the critical factors to determine the future of these enterprises.
The thesis uses the methodology of case study on a paints company and aims to
(1). Apply the concepts of activity-based costing to a paint trading company to first, obtain the accurate cost of its key activities, and then allocate the costs into difference cost objectives, i.e. products and distribution channels.
(2). Use the profitability analytical skills to understand the profitability of the company’s every products and distribution channel.
(3). Make recommended actions to lift the profitability of the company and enhance its competitiveness in the long term.
In pursuant to the studies in this thesis, following conclusions have been derived;
(1). Activity-based costing can generate more accurate cost information on products as well as the distribution channels.
(2). Activity-based costing can assist management in perceiving the managerial bottlenecks in the operations.
(3). Activity-based costing can rectify the deficiencies embodied in the performance evaluation system.
(4). Activity-based costing can help the company in improving its profitability.
(5). Activity-based costing is the basis for improving the profitability of a company, however, the success of implementing this system lies on the basis of management’s understanding on this system as well as the management determination to effectively utilize this system.
Subjects
作業基礎成本制度
成本動因
成本標的
獲利分析
改善獲利能力
Activity-based Costing
Cost Drivers
Cost Objects
Profitability Analyses
Profitability Improvements
Type
other
File(s)![Thumbnail Image]()
Loading...
Name
ntu-96-R90722054-1.pdf
Size
23.31 KB
Format
Adobe PDF
Checksum
(MD5):993b026ceb162571971f0cb4f8031625