Cover Image

Comparison of activity-based costing and time-driven activity-based costing for printed circuit board assembly production

The number of resources employed determines product costs in traditional costing analysis (TCA). TCA is flawed because manufacturing overhead may be substantially larger than the basis of allocation, therefore a little change in resource volume causes a big change in overhead. Thus, activity-based c...

Full description

Saved in:
Bibliographic Details
Main Authors: Nur Syafikah, Pinueh, Mohd Yazid, Abu, Nurul Haziyani, Aris, Muhammad Arieffuddin, Mohd Jamil, Emelia Sari, .
Format: Article
Language:English
Published: JATIT 2024
Subjects:
T Technology (General)
TJ Mechanical engineering and machinery
TS Manufactures
Online Access:http://umpir.ump.edu.my/id/eprint/40747/1/publication6-PGRS230321.pdf
http://umpir.ump.edu.my/id/eprint/40747/
https://www.jatit.org/volumes/Vol102No9/20Vol102No9.pdf
https://www.jatit.org/volumes/Vol102No9/20Vol102No9.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.ump.umpir.40747
record_format eprints
spelling my.ump.umpir.407472024-05-21T03:59:56Z http://umpir.ump.edu.my/id/eprint/40747/ Comparison of activity-based costing and time-driven activity-based costing for printed circuit board assembly production Nur Syafikah, Pinueh Mohd Yazid, Abu Nurul Haziyani, Aris Muhammad Arieffuddin, Mohd Jamil Emelia Sari, . T Technology (General) TJ Mechanical engineering and machinery TS Manufactures The number of resources employed determines product costs in traditional costing analysis (TCA). TCA is flawed because manufacturing overhead may be substantially larger than the basis of allocation, therefore a little change in resource volume causes a big change in overhead. Thus, activity-based costing (ABC) was created to solve TCA’s cost allocation issues by analyzing overhead expenses and cost drivers more thoroughly. Many cost factors may be utilized to identify overhead causes and reduce overhead expenses. ABC was theoretically inappropriate to overlook spare capacity that may help forecasting. For that reason, time-driven activity-based costing (TDABC) has been studied because it maximizes capacity cost rate and time equations to create underused capacity information. This purpose of this study observes, analyses, and compares ABC and TDABC methods to determine which is more effective for production. Four steps comprise this study’s approach. Phase 1 defines the problem, while phase 2 involves data collecting on location. Phase 3 implements ABC and TDABC methodologies and compares their costing analyses. The last phase, phase 4 concludes this research. As a result, this study shows ABC is transparent and can forecast unit product cost using cost driver rate. TDABC has objective cost driver determination, eliminates time-consuming processes, various cost drivers, and capacity utilization analysis for forecasting and planning. Thus, the comparative study met the third purpose of comparing ABC and TDABC costs sustainment utilizing numerous aspects. Finally, TDABC is the best practice because it provides better information than ABC in cost allocation, driver determination, action taken for an additional activity, cost consideration, informative, transparency, oversimplification of activities, and capacity forecast. JATIT 2024 Article PeerReviewed pdf en cc_by_nc_nd_4 http://umpir.ump.edu.my/id/eprint/40747/1/publication6-PGRS230321.pdf Nur Syafikah, Pinueh and Mohd Yazid, Abu and Nurul Haziyani, Aris and Muhammad Arieffuddin, Mohd Jamil and Emelia Sari, . (2024) Comparison of activity-based costing and time-driven activity-based costing for printed circuit board assembly production. Journal of Theoretical and Applied Information Technology, 102 (9). pp. 3954-3971. ISSN 1992-8645 (print); 817-3195 (online). (Published) https://www.jatit.org/volumes/Vol102No9/20Vol102No9.pdf https://www.jatit.org/volumes/Vol102No9/20Vol102No9.pdf
institution Universiti Malaysia Pahang Al-Sultan Abdullah
building UMPSA Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Pahang Al-Sultan Abdullah
content_source UMPSA Institutional Repository
url_provider http://umpir.ump.edu.my/
language English
topic T Technology (General)
TJ Mechanical engineering and machinery
TS Manufactures
spellingShingle T Technology (General)
TJ Mechanical engineering and machinery
TS Manufactures
Nur Syafikah, Pinueh
Mohd Yazid, Abu
Nurul Haziyani, Aris
Muhammad Arieffuddin, Mohd Jamil
Emelia Sari, .
Comparison of activity-based costing and time-driven activity-based costing for printed circuit board assembly production
description The number of resources employed determines product costs in traditional costing analysis (TCA). TCA is flawed because manufacturing overhead may be substantially larger than the basis of allocation, therefore a little change in resource volume causes a big change in overhead. Thus, activity-based costing (ABC) was created to solve TCA’s cost allocation issues by analyzing overhead expenses and cost drivers more thoroughly. Many cost factors may be utilized to identify overhead causes and reduce overhead expenses. ABC was theoretically inappropriate to overlook spare capacity that may help forecasting. For that reason, time-driven activity-based costing (TDABC) has been studied because it maximizes capacity cost rate and time equations to create underused capacity information. This purpose of this study observes, analyses, and compares ABC and TDABC methods to determine which is more effective for production. Four steps comprise this study’s approach. Phase 1 defines the problem, while phase 2 involves data collecting on location. Phase 3 implements ABC and TDABC methodologies and compares their costing analyses. The last phase, phase 4 concludes this research. As a result, this study shows ABC is transparent and can forecast unit product cost using cost driver rate. TDABC has objective cost driver determination, eliminates time-consuming processes, various cost drivers, and capacity utilization analysis for forecasting and planning. Thus, the comparative study met the third purpose of comparing ABC and TDABC costs sustainment utilizing numerous aspects. Finally, TDABC is the best practice because it provides better information than ABC in cost allocation, driver determination, action taken for an additional activity, cost consideration, informative, transparency, oversimplification of activities, and capacity forecast.
format Article
author Nur Syafikah, Pinueh
Mohd Yazid, Abu
Nurul Haziyani, Aris
Muhammad Arieffuddin, Mohd Jamil
Emelia Sari, .
author_facet Nur Syafikah, Pinueh
Mohd Yazid, Abu
Nurul Haziyani, Aris
Muhammad Arieffuddin, Mohd Jamil
Emelia Sari, .
author_sort Nur Syafikah, Pinueh
title Comparison of activity-based costing and time-driven activity-based costing for printed circuit board assembly production
title_short Comparison of activity-based costing and time-driven activity-based costing for printed circuit board assembly production
title_full Comparison of activity-based costing and time-driven activity-based costing for printed circuit board assembly production
title_fullStr Comparison of activity-based costing and time-driven activity-based costing for printed circuit board assembly production
title_full_unstemmed Comparison of activity-based costing and time-driven activity-based costing for printed circuit board assembly production
title_sort comparison of activity-based costing and time-driven activity-based costing for printed circuit board assembly production
publisher JATIT
publishDate 2024
url http://umpir.ump.edu.my/id/eprint/40747/1/publication6-PGRS230321.pdf
http://umpir.ump.edu.my/id/eprint/40747/
https://www.jatit.org/volumes/Vol102No9/20Vol102No9.pdf
https://www.jatit.org/volumes/Vol102No9/20Vol102No9.pdf
_version_ 1822924300800229376
score 13.235362

Similar Items