Activity Based Costing Research Paper

Activity Based Costing Research Paper-47
This paper presents a simulation study of a re-manufacturing system for electronic devices, which applies an activity-based costing (ABC) method to evaluate different system configurations.

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SME Large, high-profile, multinational firms receive an overwhelmingly greater amount of media attention and name recognition, but, as the following facts indicate, the role of small to medium firms (SMEs) (here defined as those with 500 or less employees) in the USA, as well as in the economies of free-market countries around the world, is significant.

With the current explosion in population growth, 600 million jobs are needed in the next 15 years to absorb the growing global workforce, mainly in Asia and Sub-Saharan Africa (World Bank).

SMEs can potentially provide employment to these hundreds of millions of people.

A real data set obtained from actual re-manufacturing operations has been used for our case study.

We quantitatively show how utilizing the concept of ABC to capture the direct labor cost and material labor cost can help make better decisions in selecting re-manufacturing system configurations.

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