Activity-based costing in the after press services industry

This research was conducted to apply activity-based costing (ABC) in an after press service company in Chiang Mai province, Thailand. The company produces all of its products by one-stop service (such as coating, stitching, binding, die cutting, and gluing). All products are made to order, and have...

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Main Authors: Shevasuthisilp S., Punsathitwong K.
Format: Conference or Workshop Item
Language:English
Published: 2014
Online Access:http://www.scopus.com/inward/record.url?eid=2-s2.0-70450239738&partnerID=40&md5=065d2e3950781a14eb088c2d10defbe3
http://cmuir.cmu.ac.th/handle/6653943832/1431
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Institution: Chiang Mai University
Language: English
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spelling th-cmuir.6653943832-14312014-08-29T09:29:17Z Activity-based costing in the after press services industry Shevasuthisilp S. Punsathitwong K. This research was conducted to apply activity-based costing (ABC) in an after press service company in Chiang Mai province, Thailand. The company produces all of its products by one-stop service (such as coating, stitching, binding, die cutting, and gluing). All products are made to order, and have different sizes and patterns. A strategy of low price is used to compete in the marketplace. After cost analysis, the study found that the company has high overhead (36.5% of total cost). The company's problem is its use of traditional cost accounting, which has low accuracy in assigning overhead costs. If management uses this information when pricing customer orders, losses may occur because real production costs may be higher than the selling price. Therefore, the application of ABC in cost analysis can help executives receive accurate cost information; establish a sound pricing strategy; and improve the manufacturing process by determining work activities which have excessively high production costs. According to this research, 6 out of 56 items had a production cost higher than the selling price, leading to losses of 123, 923 baht per year. Methods used to solve this problem were: reducing production costs; establishing suitable prices; and creating a sales promotion with lower prices for customers whose orders include processes involving unused capacity. These actions will increase overall sales of the company, and allow more efficient use of its machinery. © 2009 American Institute of Physics. 2014-08-29T09:29:17Z 2014-08-29T09:29:17Z 2009 Conference Paper 9780735407138 0094243X 10.1063/1.3256254 http://www.scopus.com/inward/record.url?eid=2-s2.0-70450239738&partnerID=40&md5=065d2e3950781a14eb088c2d10defbe3 http://cmuir.cmu.ac.th/handle/6653943832/1431 English
institution Chiang Mai University
building Chiang Mai University Library
country Thailand
collection CMU Intellectual Repository
language English
description This research was conducted to apply activity-based costing (ABC) in an after press service company in Chiang Mai province, Thailand. The company produces all of its products by one-stop service (such as coating, stitching, binding, die cutting, and gluing). All products are made to order, and have different sizes and patterns. A strategy of low price is used to compete in the marketplace. After cost analysis, the study found that the company has high overhead (36.5% of total cost). The company's problem is its use of traditional cost accounting, which has low accuracy in assigning overhead costs. If management uses this information when pricing customer orders, losses may occur because real production costs may be higher than the selling price. Therefore, the application of ABC in cost analysis can help executives receive accurate cost information; establish a sound pricing strategy; and improve the manufacturing process by determining work activities which have excessively high production costs. According to this research, 6 out of 56 items had a production cost higher than the selling price, leading to losses of 123, 923 baht per year. Methods used to solve this problem were: reducing production costs; establishing suitable prices; and creating a sales promotion with lower prices for customers whose orders include processes involving unused capacity. These actions will increase overall sales of the company, and allow more efficient use of its machinery. © 2009 American Institute of Physics.
format Conference or Workshop Item
author Shevasuthisilp S.
Punsathitwong K.
spellingShingle Shevasuthisilp S.
Punsathitwong K.
Activity-based costing in the after press services industry
author_facet Shevasuthisilp S.
Punsathitwong K.
author_sort Shevasuthisilp S.
title Activity-based costing in the after press services industry
title_short Activity-based costing in the after press services industry
title_full Activity-based costing in the after press services industry
title_fullStr Activity-based costing in the after press services industry
title_full_unstemmed Activity-based costing in the after press services industry
title_sort activity-based costing in the after press services industry
publishDate 2014
url http://www.scopus.com/inward/record.url?eid=2-s2.0-70450239738&partnerID=40&md5=065d2e3950781a14eb088c2d10defbe3
http://cmuir.cmu.ac.th/handle/6653943832/1431
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