| Summary: | 碩士 === 國立交通大學 === 管理學院工業工程與管理學程 === 100 === Activity based costing (ABC), a methodology in managerial accounting, was developed for allocating manufacturing overhead (MOH) in order to evaluate manufacturing costs of products/services more accurately. Most prior studies focused on the application of ABC to various industries, and few of them investigate how to improve or enhance the ABC methodology. Aside from the traditional track, this thesis presents an enhanced version of ABC (enhanced ABC), which intends to allocate MOH more accurately than prior ABC methodology.
The enhanced ABC methodology includes two new ideas. First, MOH transaction rather than MOH account is allocated to activities. In practice, an MOH account may include various types of MOH transactions, which are aggregated into one account but in fact have different cost drivers. Therefore, allocating each transaction in a heterogeneous MOH account will yield more accurate allocation results. Second, the MOH allocated to an activity is further classified into four types, where each type uses a particular cost driver.
The enhanced ABC methodology is applied in a precision cleaning company. Application results of using a simple allocation method, using the traditional ABC method, and using the enhanced ABC method are compared. Results revealed that the enhanced ABC method significantly outperforms the other two methods.
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