Application of activity-based costing and time-driven activity-based costing for kitchen cabinet

Intan Noralisya, Mohd Yusoff and Mohd Yazid, Abu and Sri Nur Areena, Mohd Zaini (2024) Application of activity-based costing and time-driven activity-based costing for kitchen cabinet. In: Springer Proceedings in Materials. Innovative Manufacturing, Mechatronics & Materials Forum, iM3F 2023 , 7 - 8 August 2023 , Pekan, Malaysia. pp. 91-101., 40. ISBN 978-981-99-9848-7

	Pdf manuscript.pdf Restricted to Repository staff only Download (382kB) | Request a copy
Preview	Pdf publication5-RDU220108.pdf Download (200kB) | Preview
Preview	Pdf Application of activity-based costing_ABST.pdf Download (120kB) | Preview

Abstract

Kitchen cabinets started to have a big historical impact on Malaysia with the advent of freestanding cabinets in western and colonial furniture in the 19th century. The drawback with traditional costing methods is that they fail to offer enough information about elements that are crucial to customers, such quality and service. Activity-based costing (ABC) was created to address traditional costing's limitations in complex product environments. However, it is not universally accepted as it overlooks unused capacity for forecasting. This work compares ABC and time-driven activity-based costing (TDABC) to assess cost sustainability in kitchen cabinet manufacturing. Data from a Johor-based furniture manufacturer was collected. The work successfully compares both methodologies, considering various factors. It concludes that both have strengths based on industry needs, but proving TDABC’s efficiency is essential as it is simpler, cheaper, and more powerful than ABC. Nonetheless, neither ABC nor TDABC is well-suited for kitchen cabinets manufacturing. The process of building kitchen cabinets involves inherent complexity, such as variations in measurements, material availability, and design specifications. Based on the given factors, such as higher uncertainties, biases in assumptions and inaccurate data collection, it will draw limitations in obtaining accurate and reliable data for ABC and TDABC.

Item Type:	Conference or Workshop Item (Lecture)
Uncontrolled Keywords:	Kitchen cabinet; Activity-based costing; Time-driven activity-based costing
Subjects:	T Technology > T Technology (General) T Technology > TS Manufactures
Faculty/Division:	Faculty of Manufacturing and Mechatronic Engineering Technology Institute of Postgraduate Studies
Depositing User:	Dr. Mohd Yazid Abu
Date Deposited:	25 Mar 2024 01:28
Last Modified:	25 Mar 2024 01:28
URI:	http://umpir.ump.edu.my/id/eprint/40737
Download Statistic:	View Download Statistics

Actions (login required)

View Item