THE ACTIVITY-BASED COSTING METHOD :
DEVELOPMENTS AND APPLICATIONS
The IUP Journal of Accounting Research and Audit Practices, Vol. VIII, n° 1, p. 7-22.
Department of Business Administration, University of Burgundy (France)
LEG, UMR CNRS 5118
University of Burgundy, UMR CNRS 5118,
Pôle d’Economie et de Gestion,
2, bd Gabriel, 21 680 Dijon Cedex, BP 26611,
Tel: +33 (0)3 80 39 52 77
Fax: +33 (0)3 80 39 54 88
This paper analyses the management accounting applications which try to improve the
Activity-based Costing method. In the first part, we describe them using the Strategic
Management Accounting stream. Then, we present the main features of these applications. In
the second part, we examine in details two of these features: The widening of the analysis
perimeter and the relevant level of details to analyse the costs. Then, we analyse several
proposals: Customer Profitability Analysis (CPA), Interorganizational Cost Management
(IOCM), Resource Consumption Accounting (RCA) and Time-driven ABC (TDABC).
Finally, we describe an experience observed in the IT supply European division of an
international group. This group experiments what we call at the end a supply chain ABC tool
to manage its interorganizational relations.
Activity-based Costing, Strategic Management Accounting, Time-driven ABC, Case study.