Production Cost Analysis of Prostheses by Activity-Based Cost System
Keywords:
Activity-Based Cost SystemAbstract
This research present the production cost analysis of part of prostheses. In this study, the prostheses can be divided into 12 different parts. Each part has different production process so the calculating production cost by traditional system is unclear. This result make the entrepreneur can’t find cost reduction solutions. Thus the researcher decides to use Activity-Based Cost System (ABC) analyzing production cost to determine the factors that contribute to the cost of production of each part. To use the information to make decisions to improve manufacturing process for reducing production cost. The study found that the first and the second part of prostheses has the production cost more than other parts. When the researcher return to find the cause of cost, found that it is because of the long-time turning activity. So if the production process of the first and the second part of prostheses is improved, the production cost will be reduced.
References
[2] Brimson, James A., Activity Accounting--An Activity-Based Costing Approach, John Wiley & Sons, Inc., New York, NY, 1991.
[3] Tumey, Peter B.B., COMMON CENTS-The ABC Performance Breakthrough, How to succeed with Activity-Based Costing, Cost Technology, Hillsboro, Oregon, 1992.
[4] Cooper, Robin, "Cost Classification in Unit-Based and Activity-Based Manufacturing Cost Systems," Journal of Cost Management, Vol.4, No.3, pp.4-14., 1990
[5] Cooper, Robin; Kaplan, Robert S., "Measure costsright: make the right decisions," Harvard Business Review, VoL66, pp.96-103., 1988
[6] Wen-Hsien T., “Activity-based Costing Model for Joint Products,” Computers and Industrial Engineering, Vol.31, No.3, pp.725-729, 1996.
[7] N. Salah, “Resource Breakdown Structure Development of Mechanical Equipment Project,” Chulalongkorn Engineering Journal, Vol.5, No.2, pp.15-26, August, 2557.
[8] D. Pankan , “Manufacturing Cost Analysis in Die-casting Process Using Activity-based Costing System,” Master’s Thesis, Department of Industrial Engineering, Chaing Mai University, 2553
[9] Fong C.C. and Kumar N. (2002) “Cost Drivers and Company Activities,” Retrieved July 15, 2015, [Online] information on: http://www.hk iaat.org/images/uploads/articles/AAT_Paper_3_Cost_drivers_and_company_activities.pdf
Downloads
Published
How to Cite
Issue
Section
License
The published articles are copyrighted by the School of Engineering, King Mongkut's Institute of Technology Ladkrabang.
The statements contained in each article in this academic journal are the personal opinions of each author and are not related to King Mongkut's Institute of Technology Ladkrabang and other faculty members in the institute.
Responsibility for all elements of each article belongs to each author; If there are any mistakes, each author is solely responsible for his own articles.
