Applying shuffled frog leaping algorithm to find optimal cost driver combination weights in abc cost driver replacement

Activity-based costing (ABC) is a well-known approach to allocate overhead costs to cost objects with higher accuracy than traditional costing approaches. High accuracy in allocating the overhead costs commonly requires a large number of cost drivers which is very time-consuming and expensive in dat...

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Main Authors: T. Thaiupathump, R. Chompu-Inwai
Format: Conference Proceeding
Published: 2018
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Online Access:https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85040905986&origin=inward
http://cmuir.cmu.ac.th/jspui/handle/6653943832/57150
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Institution: Chiang Mai University
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spelling th-cmuir.6653943832-571502018-09-05T03:39:12Z Applying shuffled frog leaping algorithm to find optimal cost driver combination weights in abc cost driver replacement T. Thaiupathump R. Chompu-Inwai Computer Science Engineering Activity-based costing (ABC) is a well-known approach to allocate overhead costs to cost objects with higher accuracy than traditional costing approaches. High accuracy in allocating the overhead costs commonly requires a large number of cost drivers which is very time-consuming and expensive in data-related costs, such as collection, processing, and reporting. In contrast, using too few cost drivers may cause a low level of cost accuracy. The trade-off between the complexity of the ABC method and the product cost accuracy must be carefully considered. The cost-drivers optimization problem focusing on finding an appropriate group of representative cost drivers by considering the balance between the benefits against costs is significant and challenging. A cost driver is normally replaced by only one other cost driver; however, a cost driver may also be replaced by a proper combination of other cost drivers. With the same ABC system complexity, this approach yields a more accurate cost allocation. In this paper, Shuffled Frog Leaping Algorithm (SFLA), a meta-heuristic optimization approach, is applied to find the selected cost drivers and the weights of the combinations of selected cost drivers to be used in replacing the eliminated cost drivers. 2018-09-05T03:35:31Z 2018-09-05T03:35:31Z 2017-01-01 Conference Proceeding 21648689 2-s2.0-85040905986 https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85040905986&origin=inward http://cmuir.cmu.ac.th/jspui/handle/6653943832/57150
institution Chiang Mai University
building Chiang Mai University Library
country Thailand
collection CMU Intellectual Repository
topic Computer Science
Engineering
spellingShingle Computer Science
Engineering
T. Thaiupathump
R. Chompu-Inwai
Applying shuffled frog leaping algorithm to find optimal cost driver combination weights in abc cost driver replacement
description Activity-based costing (ABC) is a well-known approach to allocate overhead costs to cost objects with higher accuracy than traditional costing approaches. High accuracy in allocating the overhead costs commonly requires a large number of cost drivers which is very time-consuming and expensive in data-related costs, such as collection, processing, and reporting. In contrast, using too few cost drivers may cause a low level of cost accuracy. The trade-off between the complexity of the ABC method and the product cost accuracy must be carefully considered. The cost-drivers optimization problem focusing on finding an appropriate group of representative cost drivers by considering the balance between the benefits against costs is significant and challenging. A cost driver is normally replaced by only one other cost driver; however, a cost driver may also be replaced by a proper combination of other cost drivers. With the same ABC system complexity, this approach yields a more accurate cost allocation. In this paper, Shuffled Frog Leaping Algorithm (SFLA), a meta-heuristic optimization approach, is applied to find the selected cost drivers and the weights of the combinations of selected cost drivers to be used in replacing the eliminated cost drivers.
format Conference Proceeding
author T. Thaiupathump
R. Chompu-Inwai
author_facet T. Thaiupathump
R. Chompu-Inwai
author_sort T. Thaiupathump
title Applying shuffled frog leaping algorithm to find optimal cost driver combination weights in abc cost driver replacement
title_short Applying shuffled frog leaping algorithm to find optimal cost driver combination weights in abc cost driver replacement
title_full Applying shuffled frog leaping algorithm to find optimal cost driver combination weights in abc cost driver replacement
title_fullStr Applying shuffled frog leaping algorithm to find optimal cost driver combination weights in abc cost driver replacement
title_full_unstemmed Applying shuffled frog leaping algorithm to find optimal cost driver combination weights in abc cost driver replacement
title_sort applying shuffled frog leaping algorithm to find optimal cost driver combination weights in abc cost driver replacement
publishDate 2018
url https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85040905986&origin=inward
http://cmuir.cmu.ac.th/jspui/handle/6653943832/57150
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