Cost evaluation using activity-based costing system in a manufacturing firm.

摘要

Over the last 40 years, the market has been changing from a local market to a global market, however, the cost system did not change along with the market. A existing cost system is traditonal cost accounting system. The traditional cost accounting system has shown that it cannot provide understandable and reasonable information for manufacturing costs. This problem often leads a management team to confusion and the obscured information may suggest a wrong alternative decision.;This research studies the problems on the existing traditional cost accounting system and introduces a new cost system, Activity-Based Costing (ABC) system. The thesis introduces the benefits of ABC system and how to design and implement an ABC system step by step. Finally, an implementation example from a manufacturing firm in Bangkok, Thailand is demonstrated.;From using the ABC system, the analysis and results show three main benefits that can be applied and utilized by the company. First, the ABC information demonstrates detailed costs of manufacturing including overhead costs, which are consumed by each activity. Second, the ABC information can be utilized to set the standard price of existing products. Third, the ABC information can be applied to for future projects.