IDEAS home Printed from https://ideas.repec.org/a/ags/ifaamr/264208.html
   My bibliography  Save this article

An application of activity-based costing in the chicken processing industry: a case of joint products

Author

Listed:
  • Kabinlapat, Panravee
  • Sutthachai, Siriluck

Abstract

A great deal of research has been presented on the application of activity-based costing (ABC) in the manufacturing and service industries. In the field of agribusiness, which focuses uniquely on joint products, few studies exist that illustrate applications of ABC. This research has therefore applied ABC to a food company, concentrating on fresh and frozen chicken processing production. The basic process of ABC, based upon five steps, was applied and demonstrated the difficulties in applying cost data collection, identifying activity and cost drivers, as well as collecting driver data. The results also revealed significant differences in unit costs derived by ABC and the company’s existing cost system, particularly within frozen food products. This may suggest the possibility of distorted cost allocations within the company’s current costing system.

Suggested Citation

  • Kabinlapat, Panravee & Sutthachai, Siriluck, 2016. "An application of activity-based costing in the chicken processing industry: a case of joint products," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(1), January.
    • Handle: RePEc:ags:ifaamr:264208
    DOI: 10.22004/ag.econ.264208
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/264208/files/ifamr2016.0017.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/264208/files/ifamr2016.0017.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.264208?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Liu, Lana Y.J. & Pan, Fei, 2007. "The implementation of Activity-Based Costing in China: An innovation action research approach," The British Accounting Review, Elsevier, vol. 39(3), pages 249-264.
    2. Ong, N. S., 1995. "Manufacturing cost estimation for PCB assembly: An activity-based approach," International Journal of Production Economics, Elsevier, vol. 38(2-3), pages 159-172, March.
    3. Jamaliah Abdul Majid & Maliah Sulaiman, 2008. "Implementation of activity based costing in Malaysia," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 16(1), pages 39-55, May.
    4. Gunasekaran, A. & Sarhadi, M., 1998. "Implementation of activity-based costing in manufacturing," International Journal of Production Economics, Elsevier, vol. 56(1), pages 231-242, September.
    5. Spedding, T. A. & Sun, G. Q., 1999. "Application of discrete event simulation to the activity based costing of manufacturing systems," International Journal of Production Economics, Elsevier, vol. 58(3), pages 289-301, January.
    6. I Themido & A Arantes & C Fernandes & A P Guedes, 2000. "Logistic costs case study—an ABC approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 51(10), pages 1148-1157, October.
    7. Tornberg, Katja & Jamsen, Miikka & Paranko, Jari, 2002. "Activity-based costing and process modeling for cost-conscious product design: A case study in a manufacturing company," International Journal of Production Economics, Elsevier, vol. 79(1), pages 75-82, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Askarany, Davood & Yazdifar, Hassan & Askary, Saeed, 2010. "Supply chain management, activity-based costing and organisational factors," International Journal of Production Economics, Elsevier, vol. 127(2), pages 238-248, October.
    2. Askarany, Davood & Yazdifar, Hassan, 2012. "An investigation into the mixed reported adoption rates for ABC: Evidence from Australia, New Zealand and the UK," International Journal of Production Economics, Elsevier, vol. 135(1), pages 430-439.
    3. Qian, Li & Ben-Arieh, David, 2008. "Parametric cost estimation based on activity-based costing: A case study for design and development of rotational parts," International Journal of Production Economics, Elsevier, vol. 113(2), pages 805-818, June.
    4. Ben-Arieh, David & Qian, Li, 2003. "Activity-based cost management for design and development stage," International Journal of Production Economics, Elsevier, vol. 83(2), pages 169-183, February.
    5. Baykasoglu, Adil & Kaplanoglu, Vahit, 2008. "Application of activity-based costing to a land transportation company: A case study," International Journal of Production Economics, Elsevier, vol. 116(2), pages 308-324, December.
    6. Schulze, Manuel & Seuring, Stefan & Ewering, Christian, 2012. "Applying activity-based costing in a supply chain environment," International Journal of Production Economics, Elsevier, vol. 135(2), pages 716-725.
    7. Francesca Francioli & Alberto Quagli, 2021. "Management accounting change and the rise of Vespa (1884-1965)," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2021(suppl. 2), pages 313-338.
    8. Pike, Richard H. & Tayles, Mike E. & Mansor, Nur Naha Abu, 2011. "Activity-based costing user satisfaction and type of system: A research note," The British Accounting Review, Elsevier, vol. 43(1), pages 65-72.
    9. Domenico Raucci & Dominique Lepore, 2020. "A Simplified Activity-Based Costing Approach for SMEs: The Case Study of an Italian Small Road Company," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 198-214.
    10. Amanda Curry, 2019. "Across the great divide: a literature review of management accounting and operations management at the shop floor," Management Review Quarterly, Springer, vol. 69(1), pages 75-119, February.
    11. Marcella Bernardo & Renato da Silva Lima, 2017. "Using Action Research to Implement Selective Waste Collection Program in a Brazilian City," Systemic Practice and Action Research, Springer, vol. 30(6), pages 593-608, December.
    12. Duran, Orlando & Afonso, Paulo Sérgio Lima Pereira, 2020. "An activity based costing decision model for life cycle economic assessment in spare parts logistic management," International Journal of Production Economics, Elsevier, vol. 222(C).
    13. Maiga, Adam S., 2014. "Assessing self-selection and endogeneity issues in the relation between activity-based costing and performance," Advances in accounting, Elsevier, vol. 30(2), pages 251-262.
    14. Martha Ríos Manríquez & Clara I. Muñoz Colomina & M. Lourdes Rodríguez Vilariño Pastor, 2014. "Is the activity based costing system a viable instrument for small and medium enterprises? The case of Mexico," Estudios Gerenciales, Universidad Icesi, July.
    15. Li, Xinxiang & Soobaroyen, Teerooven, 2021. "Accounting, Ideological and Political Work and Chinese multinational operations: A neo-Gramscian perspective," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 74(C).
    16. Potter, Andrew & Lalwani, Chandra, 2007. "Developing a methodology to analyse despatch bay performance," International Journal of Production Economics, Elsevier, vol. 106(1), pages 82-91, March.
    17. Tarzibashi Omar Fikrat Fateh & Ozyapici Hasan, 2019. "The Impact of the Magnitude of Overhead Costs on the Difference Between ABC and TDABC Systems," Foundations of Management, Sciendo, vol. 11(1), pages 81-92, January.
    18. Mamouni Limnios, Elena Alexandra & Ghadouani, Anas & Schilizzi, Steven G.M. & Mazzarol, Tim, 2009. "Giving the consumer the choice: A methodology for Product Ecological Footprint calculation," Ecological Economics, Elsevier, vol. 68(10), pages 2525-2534, August.
    19. Abedalqader Rbaba’h, 2013. "The influence of Company Characteristics Factors to Activity Based Costing System Implementation," Journal of Education and Vocational Research, AMH International, vol. 4(2), pages 36-46.
    20. Gopalakrishnan, Mohan & Libby, Theresa & Samuels, Janet A. & Swenson, Dan, 2015. "The effect of cost goal specificity and new product development process on cost reduction performance," Accounting, Organizations and Society, Elsevier, vol. 42(C), pages 1-11.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ifaamr:264208. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifamaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.