An application of activity based costing in the air conditioner manufacturing industry.: An article from: Engineering Economist

This digital document is an article from Engineering Economist, published by Thomson Gale on September 22, 2004. The length of the article is 5121 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the author: AIRCO is a manufacturer of industrial air conditioner units whose management is concerned that their current traditional cost accounting (TCA) system is not accurately representing their product cost behavior. Under certain operating conditions, an activity based costing (ABC) system can provide relevant and accurate indirect cost information that assists in making customer, product, and process improvement decisions. An ABC system was successfully developed for AIRCO that indicated that their products do not consume overhead costs on a volume basis as represented by their current TCA system. Valuable product and process information were obtained. This case study details the development process that was used and the results that were obtained during the ABC analysis.

Citation Details
Title: An application of activity based costing in the air conditioner manufacturing industry.
Author: Heather Nachtmann
Publication:Engineering Economist (Magazine/Journal)
Date: September 22, 2004
Publisher: Thomson Gale
Volume: 49 Issue: 3 Page: 221(16)

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