Global Advanced Research Journal of Management and Business Studies (GARJMBS) ISSN: 2315-5086 October 2014 Vol. 3(10), pp 445-456
Copyright © 2014 Global Advanced Research Journals
Original Research Articles
An Activity Based Costing-based : A Case Study of a Taiwanese Gudeng Precision Company
Chien-Lung Hsu1 and Chun-Hao Chiang2*
1Department of Marketing Management, Takming University of Science and Technology No.56, Sec. 1, Huanshan Rd., Neihu, Taipei City 11451, Taiwan (R.O.C.)alanhsu8399@takming.edu.twDepartment of Banking and Finance, National Chi Nan University, No.1, University Rd, Puli, Nantou County, 54561 Taiwan ( R.O.C. )
2Department of Risk Control Management, Mega Financial Holding Company,14F, No. 123, Section 2, Jhongsiao E. Road, Taipei 100, Taiwan(R.O.C.)*hector@megaholdings.com.tw
Accepted 22 October 2014
Abstract
Traditional cost accounting allocation of manufacturing costs is not rigorous enough, resulting in product cost structure distortions. This responsibility for company operation should be internalized into business operations--prior to production--in order to reflect the true cost of the final product. Due to the use of traditional cost accounting, many organizations have not estimated their productional costs precisely. In this paper, we propose an integrated concept the Activity-Based Costing approached to solve the problem of manufacturing and cost evaluation. We include a case study of an Gudeng Precision Company (Semiconductor Process Equipment Factory) in Taiwan to show that the activity-based costing method estimates semiconductor front-end equipment manufacturing costs of a final product more accurately than traditional approaches do. The method can, therefore, provide information for use in existing manufacturing accounting systems and help managers incorporate manufacturing costs into their decision-making processes.
Keywords: Activity-Based Costing, manufacturing cost, Semiconductor Process Equipment Factory
Related Articles
Current Issue
- View Full Article - PDF
- Download Full Article - PDF
Viewing Options
- Chien Lung Hsu on Google Scholar
- Chien Lung Hsu on Pubmed
- Chun Hao Chiang on Google Scholar
- Chun Hao Chiang on Pubmed
Search for Articles
- Viewed 2608
- Printed 633
- Downloaded 12223