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An
Activity Based Costing-based : A Case Study of a
Taiwanese Gudeng Precision Company
Chien-Lung Hsu1
and Chun-Hao Chiang2*
1Department
of Marketing Management, Takming University of
Science and Technology
No.56,
Sec. 1, Huanshan Rd., Neihu, Taipei City 11451,
Taiwan (R.O.C.)
alanhsu8399@takming.edu.tw
Department of Banking and Finance, National Chi Nan
University,
No.1,
University Rd, Puli, Nantou County, 54561 Taiwan (
R.O.C. )
2Department
of Risk Control Management, Mega Financial Holding
Company,14F, No. 123,
Section 2, Jhongsiao E. Road, Taipei 100,
Taiwan(R.O.C.)
*hector@megaholdings.com.tw
Accepted 22 October 2014
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Traditional
cost accounting allocation of manufacturing costs is
not rigorous enough, resulting in product cost
structure distortions. This responsibility for
company operation should be internalized into
business operations--prior to production--in order
to reflect the true
cost of the
final product.
Due to the use of traditional cost accounting, many
organizations have not estimated their productional
costs precisely. In this paper, we propose an
integrated concept the Activity-Based Costing
approached to solve the problem of manufacturing and
cost evaluation. We include a case study of an
Gudeng Precision Company
(Semiconductor Process Equipment Factory) in Taiwan
to show that the activity-based costing method
estimates semiconductor front-end equipment
manufacturing costs of a
final product more accurately than traditional approaches do. The
method can, therefore, provide information for use
in existing manufacturing accounting systems and
help managers incorporate manufacturing costs into
their decision-making processes.
Keywords:
Activity-Based Costing,
manufacturing cost, Semiconductor Process Equipment
Factory
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