Product costing in the furniture industry using the ABC method Costeo de productos en la industria del mueble mediante método ABC

Ramis, F; Cepeda, C; Resales V.; Neriz, L

Abstract

The work presents a model of furniture costing designed using the technique of Activity Based Costing (ABC). The model is of particular interest and application in the furniture industry, which is independent of the size of the company, due to the great diversity of products, processes and machines involved in the production of furniture. The ABC system uses an assignment procedure, where the resources are assigned first to the activities and then these are assigned to the products or cost objects by means of the costs drivers. This system allows the assignment and distribution of the different indirect costs according to the activities in which they are consumed, identifying the origin of the cost of the activity, not only for the production stage but also for the distribution and sales activities. To illustrate the use of the model, this is applied to the determination of the cost of production of two rocking chairs of the type gliders. It is concluded that the total costs of production is undervalued in the traditional costing method with respect to the ABC costing in 19,8% for the Pelequen design and in 29,3% for the Modern design. © 2007 Universidad del Bío-Bío.

Más información

Título según SCOPUS: Product costing in the furniture industry using the ABC method [Costeo de productos en la industria del mueble mediante método ABC]
Título de la Revista: MADERAS. CIENCIA Y TECNOLOGIA
Volumen: 3
Número: 01-feb
Editorial: Universidad del Bío-bío
Fecha de publicación: 2001
Página de inicio: 14
Página final: 26
Idioma: Spanish
URL: http://www.scopus.com/inward/record.url?eid=2-s2.0-52549126740&partnerID=q2rCbXpz
Notas: SCOPUS