【正文】 and the individual products? use of support resources differs from their use of volumebased cost drivers 第一（ ），提供海量管理資料免費下載！ 48 ABC benefits will be greatest where... ?Production activity involves diverse batch sizes and product plexity. ?There are likely to be high ?costs? associated with making inappropriate decisions, based on inaccurate product costs. ?The cost of designing, implementing and maintaining an ABC system is relatively low due to sophisticated IT support 第一（ ），提供海量管理資料免費下載！ 49 Impediments to introducing ABC ?Lack of awareness of ABC ?Uncertainty about the potential benefits from ABC ?Firms understand the need for change but are concerned about the extensive resource requirements to implement ABC ?Resistance to change among managers and employees ?Reading by Booth and Giacobbe 第一（ ），提供海量管理資料免費下載！ 50 Other activitybased costing issues ?Sources of variations in types of ABC include whether ?actual (past) or budgeted costs are analysed ?the implementation is a oneoff project or an ongoing system ?cost objects, other than products, are included 第一（ ），提供海量管理資料免費下載！ 51 Other activitybased costing issues ?Implications of excess capacity ?ABC estimates the cost of resources used to perform activities to produce and sell products, which may not always equal the cost of resources supplied ?need to account for the costs of unused capacity when budgeted costs have been used to generate activitybased product costs 第一（ ），提供海量管理資料免費下載！ 52 Other activitybased costing issues ?Behavioural issues ?change can be perceived as threatening ABC may require changes in data collected and collection and analysis procedures ??bottomup? change management may give some degree of ownership of any changes caused by ABC ?management must be seen as mitted to the change process 第一（ ），提供海量管理資料免費下載！ 53 Limitations of activitybased costing ?If a high level of facilitylevel costs are allocated to products, this can lead to an arbitrary element of product cost ?Unitised batch, product and facilitylevel costs can lead to product costs that are of limited use for decision making ?The cost of updating an ABC system can be very high, but this is needed to avoid producing outdated, irrelevant information 第一（ ），提供海量管理資料免費下載！ 54 Activitybased costing in service anisations ?ABC can be difficult to implement in service firms, because ?high levels of facility costs cause problems with costing services ?individual activities are difficult to identify because they are nonrepetitive ?a nonrepetitive production environment makes it difficult to identify service outputs 第一（ ），提供海量管理資料免費下載！ 55 Activitybased management (ABM) ?Process of using information from activitybased costing to analyse activities, cost drivers and performance so that customer value and profitability are improved ?Customer value ?the features of a product which customers are willing to pay 第一（ ），提供海量管理資料免費下載！ 56 Using ABM to reduce costs ?Identify the major opportunities for cost reduction ?Determine the real causes of these costs ?Develop a program to eliminate the causes, and, therefore, the costs ?Introduce performance measures to monitor the effectiveness of cost reduction efforts 第一（ ），提供海量管理資料免費下載！ 57 Identifying the major opportunities for cost reduction ?Valueadded activities ?essential to the customer, or business ?Nonvalueadded activities ?can be eliminated without detriment to either the customers or the business 第一（ ），提供海量管理資料免費下載！ 58 ValueAdded Costs ?A valueadded cost is a cost that customers perceive as adding value, or utility, to a product or service . for a puter: – Adequate memory – Preloaded software – Reliability – Easytouse keyboards 第一（ ），提供海量管理資料免費下載！ 59 Nonvalueadded costs ?A nonvalueadded cost is a cost that customers do not perceive as adding value, or utility, to a product or service. v Cost of expediting v Rework v Repair v Material inspection v Idle time 第一（ ），提供海量管理資料免費下載！ 60 ActivityBased Management ?ABM can be used for l Product pricing and mix decisions l Cost reduction and process improvement decisions l Design decisions 第一（ ），提供海量管理資料免費下載！ 61 Product Pricing and Mix Decisions ?ABC gives management insight into the cost structures for making and selling a diverse range of products. ?It provides more accurate product cost information and more detailed information on costs of activities and the drivers of those costs. 第一（ ），提供海量管理資料免費下載！ 62 Cost Reduction and Process Improvement Decisions ?Manufacturing and distribution personnel use ABC systems to focus on cost reduction efforts. ?Managers set costreduction targets in terms of reducing the cost per unit of the costallocation base. 第一（ ），提供海量管理資料免費下載！ 63 Design Decisions ?Management can identify and evaluate new designs to improve performance by evaluating how product and process designs affect activities and costs. ?Companies can work with their customers to evaluate the costs and prices of alternative design choices. 第一（ ），提供海量管理資料免費下載！ 64 JustInTime Production Systems ?Justintime (JIT) production systems take a “demand pull” approach in which goods are only manufactured when needed to satisfy customer orders. ?Demand triggers each step of the production process, starting with customer demand for a finished product at the end of the process, to the demand for direct materials at the beginning of the process. 第一（ ），提供海量管理資料免費下載！ 65 Major Features of a JIT System ?The five major features of a JIT system are: l Organizing production in manufacturing cells l Hiring and retaining multiskilled workers l Emphasizing total