The major drawbacks of traditional approaches to product costing include lack of manufacturing knowledge, reliance on the detailed design description, poor cost function approximation and inability to update estimatio...The major drawbacks of traditional approaches to product costing include lack of manufacturing knowledge, reliance on the detailed design description, poor cost function approximation and inability to update estimation algorithms by using actual cost data. Adopting the Activity-Based Costing (ABC) concept and based on estimated processing time, this paper proposes a pragmatic approach to product costing. The approach involves two stages, namely the preparatory stage and the estimation stage. A case study conducted in a refrigerator company is reported.展开更多
基金National 863High-Tech Scheme of China and Kelong Electronics Ltd( No.863-51 1 -984 5-0 0 9863- 51 1 -91 0 -4 0 2 )
文摘The major drawbacks of traditional approaches to product costing include lack of manufacturing knowledge, reliance on the detailed design description, poor cost function approximation and inability to update estimation algorithms by using actual cost data. Adopting the Activity-Based Costing (ABC) concept and based on estimated processing time, this paper proposes a pragmatic approach to product costing. The approach involves two stages, namely the preparatory stage and the estimation stage. A case study conducted in a refrigerator company is reported.
