APPLICABILITY OF ACTIVITY BASED COSTING IN NEW PRODUCT DEVELOPMENT PROCESSES

• Main Author: Ewa Wanda MARUSZEWSKA
• Format: Article
• Language: English
• Published: P.A. NOVA S.A. 2015-01-01
• Series: Management Systems in Production Engineering
• Subjects: management accounting; activity based costing; new product development; production engineering
• Online Access: http://wydawnictwo.panova.pl/attachments/category/36/08.pdf

The purpose of the article is to emphasis that activity based costing is a proper tool for engineers to enhance their deci-sion-making process while developing new product. The theoretical analysis shows that variety of factors shall be en-compassed into new product decision-making process and therefore engineers and management should pay great attention to proper cost allocation. The paper suggests the usage of Activity Based Costing methodology for new product development decision-making process. Author states that application ABC in the process of rational decision-making referring to new product development enables managers and engineers to prioritize possible solutions, and reallocate resources used in production process in order to meet wider organizational goals. It would also contribute in coopera-tion of managers and engineers for the sake of organizational goal.