Cost modeling in logistics using time‐driven ABC

Emerald - Tập 38 Số 3 - Trang 172-191 - 2008
Patricia Everaert1, Werner Bruggeman1, Gerrit Sarens2, Steven R. Anderson3, Yves Levant4
1Ghent University, Ghent, Belgium
2Université Catholique de Louvain, Louvain‐la‐Neuve, Belgium University of Antwerp, Antwerp, Belgium
3Acorn Systems, Houston, Texas, USA
4Université des Sciences et Technologies de Lille, Villeneuve d'Ascq, France

Tóm tắt

PurposeThe purpose of this paper is to describe the experiences of a wholesaler with time‐driven activity‐based costing (TDABC). Three research questions are addressed: How are complex logistics operations modeled by TDABC? Does TDABC provide more accurate cost information than activity‐based costing (ABC)? How is TDABC cost information used?Design/methodology/approachCase study research was performed at a Belgian wholesaler. Interviews were conducted. The cost and activity database was analyzed.FindingsThis case study illustrates that there are logistics operations that cannot be modeled using a single cost driver, as is done with ABC. TDABC uses time equations to estimate the time spent on each activity. The results herein show how the time equations can capture the different complexities, by including different terms or interaction terms in the time equations. The database analysis clearly demonstrates that TDABC provided more accurate cost information than ABC at this case company. ABC oversimplified 64 percent of the activities, and misallocated 55 percent of all indirect costs.Research limitations/implicationsThis study is one of the first, investigating the experiences with TDABC. The results are derived from analyzing all activities, at a single case company.Practical implicationsThe study illustrates the technique of TDABC and provides a real company example of time equations in logistics. The users declared the TDABC model very useful for profitability reporting and profit management. The time drivers provided insight into the causes of excessive distribution and logistics costs.Originality/valueThis paper complements current discussion on cost drivers and subtasks and logistics costing.

Từ khóa


Tài liệu tham khảo

Baxter, J.A. and Chua, W.F. (1998), “Doing field research: practice and meta‐theory in counterpoint”, Journal of Management Accounting Research, Vol. 10, pp. 69‐83.

Cokins, G. (1999), “Are all of your trading partners ‘worth it’ to you?”, White Paper, available at: http://cokins.ascet.com.

Cooper, R. (1988), “The rise of activity‐based costing: part one: what is an activity‐based cost system?”, Journal of Cost Management, Summer, pp. 45‐54.

Everaert, P. and Bruggeman, W. (2007), “Time‐driven activity‐based costing: exploring the underlying model”, Cost Management, Vol. 21 No. 2, pp. 16‐20.

Foster, G., Gupta, M. and Sjoblom, L. (1996), “Customer profitability analysis: challenges and new directions”, Journal of Cost Management, Spring, pp. 5‐17.

Kaplan, R. and Anderson, S. (2004), “Time‐driven activity‐based costing”, Harvard Business Review, November, pp. 131‐8.

Kaplan, R. and Anderson, S. (2007), Time‐driven Activity‐based Costing, a Simpler and more Powerful Path to Higher Profits, Harvard Business School Press, Boston, MA.

Kaplan, R. and Cooper, R. (1998), Cost & Effect, Using Integrated Cost Systems to Drive Profitability and Performance, Harvard Business School Press, Boston, MA.

Keating, P. (1995), “A framework for classifying and evaluating the theoretical contributions of case research in management accounting”, Journal of Management Accounting Research, Vol. 7 No. 2, pp. 66‐86.

Lin, B., Collins, J. and Su, R. (2001), “Supply chain costing: an activity‐based perspective”, International Journal of Physical Distribution & Logistics Management, Vol. 31 Nos 9/10, pp. 702‐13.

Norek, C. and Pohlen, T. (2001), “Cost knowledge: a foundation for improving supply chain relationships”, International Journal of Logistics Management, Vol. 12 No. 1, pp. 37‐51.

Pohlen, T. and La Londe, B. (1994), “Implementing activity‐based costing (ABC) in logistics”, Journal of Business Logistics, Vol. 15 No. 2, pp. 1‐23.

Shapiro, B., Rangan, K., Moriarity, R. and Ross, E. (1987), “Manage customers for profits (not just sales)”, Harvard Business Review, Vol. 65 No. 5, pp. 101‐8.

Themido, I., Arantes, A., Fernandes, C. and Guedes, A.P. (2000), “Logistic costs case study: an ABC approach”, Journal of the Operational Research Society, Vol. 51, pp. 1148‐57.

Varila, M., Seppaïnen, M. and Suomala, P. (2007), “Detailed cost modelling: a case study in warehouse logistics”, International Journal of Physical Distribution & Logistics Management, Vol. 37 No. 3, pp. 184‐200.

Cobb, I., Innes, J. and Mitchell, F. (1994), “Activity‐based costing problems: the British experience”, Advances in Management Accounting, Vol. 2, pp. 63‐83.

Innes, J., Mitchell, F. and Cobb, I. (1992), Activity‐Based Costing: Problems in Practice, CIMA, London.

Kärkkäinen, M., Laukkanen, S., Sarpola, S. and Kemppainen, K. (2007), “Roles of interfirm information systems in supply chain management”, International Journal of Physical Distribution & Logistics Management, Vol. 37 No. 4, pp. 264‐86.

Thông tin
Thông tin xuất bản

Emerald

Tập 38 Số 3

172-191

Thông tin tác giả