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The Activity-Based Costing Method: Development and Applications


  • Gregory Wegmann


This paper analyzes the management accounting applications, which try to improve the Activity-Based Costing (ABC) method. First, the paper describes them using the Strategic Management Accounting (SMA) stream. Then it presents the main features of these applications. Second, the paper examines in detail two of these features the widening of the analysis perimeter and the relevant level of details to analyze the costs. Subsequently, it analyzes several proposals, such as Customer-Driven ABC, Interorganizational Cost Management (IOCM), Resource Consumption Accounting (RCA) and Time-Driven ABC (TDABC). Finally, it describes an experience observed in the IT supply European division of an international group. This group experiments, what we call an ‘Activity-Based Supply Chain Costing Tool’ to manage its interorganizational relations.

Suggested Citation

  • Gregory Wegmann, 2009. "The Activity-Based Costing Method: Development and Applications," The IUP Journal of Accounting Research and Audit Practices, IUP Publications, vol. 0(1), pages 7-22, January.
  • Handle: RePEc:icf:icfjar:v:08:y:2009:i:1:p:7-22

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    Cited by:

    1. Ercument Okutmus, 2015. "Resource Consumption Accounting with Cost Dimension and an Application in a Glass Factory," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 5(1), pages 46-57, January.

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