Integration of Activity-Based Budgeting and Activity-Based Management

Tandung Huynh; Guangming Gong; Huyhanh Huynh

doi:doi:10.11648/j.ijefm.20130104.11

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Integration of Activity-Based Budgeting and Activity-Based Management

Tandung Huynh, Guangming Gong, Huyhanh Huynh

Published in International Journal of Economics, Finance and Management Sciences (Volume 1, Issue 4)

Received: 19 June 2013 Published: 10 August 2013

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Abstract

Activity-Based Costing (ABC)/Activity-Based Management (ABM) was developed in the mid 1980s by Kaplan and it has been applied very popular in developed countries with obvious advantages. Although ABC system has more advantages than traditional systems, but in today’s competitive economic environment it has not met fulfilled provision of sufficient information for decision-making. The ABC/ABM system alone, however, lacks the ability to support information for managerial decisions. We can summary the limitations of single ABC in today’s business environment as follow: (1) ABC was originally developed because traditional costing appeared to be providing misleading product costs. Only single ABC using, it just provides an alternative way to trace costs to products, (2) lack of planning and control cost. ABC/ABM discusses a product has already been developed, has been incurred costs, and is ready to be marketed as soon as a price set, (3) limit in finding opportunities for innovation, (4) lack of support for short-term decision. How can we overcome these limitations of ABC/ABM? This paper draws the framework of integration of ABC/ABM with other management accounting methods as one way to overcome its limitation and innovation management accounting. In the cope of this paper, authors focus on one model in the framework that is the integration of ABB with ABM.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 1, Issue 4)
DOI	10.11648/j.ijefm.20130104.11
Page(s)	181-187
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2013. Published by Science Publishing Group

Keywords

Integration, Activity-Based Management (ABM), Activity-Based Budgeting (ABB)

References

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[2]	Akyol, D.E., Tuncel, G. and Bayhan, G.M., 2005. A Comparative Analysis of Activity-Based Costing and Traditional Costing. World Academy of Science, Engineering and Technology, 3, 44-47
[3]	Baird, K., 2007. Adoption of activity management practices in public sector organizations. Accounting and Finance, 47, 551-569
[4]	Chen, G.M., Firth, M. and Park, K., 1993. The implementation and benefits of activity-based costing: a Hong Kong study. Asian Review of Accounting, 9(2), 23-37
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[8]	Cooper, R. and Kaplan, R.S., 1991. Profit priorities from activity-based costing. Harvard Business Review, May-June, 130-135.
[9]	Gunther Friedl, Hans-Ulrich Kupper, Burkhard Pedell., 2005. Relevance Added: Combining ABC with German Cost Accounting. Strategic Finance, 6, 56-61
[10]	Hansen, D.R. and Mowen, M.M., 2003. Cost management: Accounting and Control. Peking, Peking University Press.
[11]	Hilton, Ronald W., 2002. Managerial accounting: creating value in a dynamic business environment (5th Ed), China Machine Press.
[12]	Hixon, M., 1995. Activity-based management: its purpose and benefit. Management Accounting, June.
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[16]	Lewis, L.D., 1992. Activity-Based Costing: A tool for management. Central Business Review, 11(2), 28-30.
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[19]	Matthew, J, Miller, T., 1998. A framework for integrating activity-based costing and balanced scorecard into the logistics strategy development and monitoring process. Journal of Business Logistics, 19, 131-138
[20]	Mohamed M. El Gibaly and Ahmed Abdelnaby Ahmed Diab., 2012. A model to integrate of the ABC and the BSC in the Egyptian companies: Aligning strategic efficiency and performance improvement (Field study). Journal of American Science, 8(6), 543-554
[21]	Nassar, M., Al-Khadash, H.A. and Sangster, A., 2011. The diffusion of Activity-Based Costing in Jordanian industrial companies. Qualitative Research in Accounting & Management, 8(2), 180-200.
[22]	Qayoumi, M.H., 1996. Using activity-based management as a vehicle for managing change. Facilities Manager, 12(1), 28-32
[23]	Roztocki, N., & Needy, K. L., 1999. Integrating Activity-Based Costing and Economic Value Added in Manufacturing. Engineering Management Journal, 11(2), 17-22.
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APA Style

Tandung Huynh, Guangming Gong, Huyhanh Huynh. (2013). Integration of Activity-Based Budgeting and Activity-Based Management. International Journal of Economics, Finance and Management Sciences, 1(4), 181-187. https://doi.org/10.11648/j.ijefm.20130104.11

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ACS Style

Tandung Huynh; Guangming Gong; Huyhanh Huynh. Integration of Activity-Based Budgeting and Activity-Based Management. Int. J. Econ. Finance Manag. Sci. 2013, 1(4), 181-187. doi: 10.11648/j.ijefm.20130104.11

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AMA Style

Tandung Huynh, Guangming Gong, Huyhanh Huynh. Integration of Activity-Based Budgeting and Activity-Based Management. Int J Econ Finance Manag Sci. 2013;1(4):181-187. doi: 10.11648/j.ijefm.20130104.11

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@article{10.11648/j.ijefm.20130104.11,
  author = {Tandung Huynh and Guangming Gong and Huyhanh Huynh},
  title = {Integration of Activity-Based Budgeting and Activity-Based Management},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {1},
  number = {4},
  pages = {181-187},
  doi = {10.11648/j.ijefm.20130104.11},
  url = {https://doi.org/10.11648/j.ijefm.20130104.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20130104.11},
  abstract = {Activity-Based Costing (ABC)/Activity-Based Management (ABM) was developed in the mid 1980s by Kaplan and it has been applied very popular in developed countries with obvious advantages. Although ABC system has more advantages than traditional systems, but in today’s competitive economic environment it has not met fulfilled provision of sufficient information for decision-making. The ABC/ABM system alone, however, lacks the ability to support information for managerial decisions. We can summary the limitations of single ABC in today’s business environment as follow: (1) ABC was originally developed because traditional costing appeared to be providing misleading product costs. Only single ABC using, it just provides an alternative way to trace costs to products, (2) lack of planning and control cost. ABC/ABM discusses a product has already been developed, has been incurred costs, and is ready to be marketed as soon as a price set, (3) limit in finding opportunities for innovation, (4) lack of support for short-term decision. How can we overcome these limitations of ABC/ABM? This paper draws the framework of integration of ABC/ABM with other management accounting methods as one way to overcome its limitation and innovation management accounting. In the cope of this paper, authors focus on one model in the framework that is the integration of ABB with ABM.},
 year = {2013}
}

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TY  - JOUR
T1  - Integration of Activity-Based Budgeting and Activity-Based Management
AU  - Tandung Huynh
AU  - Guangming Gong
AU  - Huyhanh Huynh
Y1  - 2013/08/10
PY  - 2013
N1  - https://doi.org/10.11648/j.ijefm.20130104.11
DO  - 10.11648/j.ijefm.20130104.11
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 181
EP  - 187
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20130104.11
AB  - Activity-Based Costing (ABC)/Activity-Based Management (ABM) was developed in the mid 1980s by Kaplan and it has been applied very popular in developed countries with obvious advantages. Although ABC system has more advantages than traditional systems, but in today’s competitive economic environment it has not met fulfilled provision of sufficient information for decision-making. The ABC/ABM system alone, however, lacks the ability to support information for managerial decisions. We can summary the limitations of single ABC in today’s business environment as follow: (1) ABC was originally developed because traditional costing appeared to be providing misleading product costs. Only single ABC using, it just provides an alternative way to trace costs to products, (2) lack of planning and control cost. ABC/ABM discusses a product has already been developed, has been incurred costs, and is ready to be marketed as soon as a price set, (3) limit in finding opportunities for innovation, (4) lack of support for short-term decision. How can we overcome these limitations of ABC/ABM? This paper draws the framework of integration of ABC/ABM with other management accounting methods as one way to overcome its limitation and innovation management accounting. In the cope of this paper, authors focus on one model in the framework that is the integration of ABB with ABM.
VL  - 1
IS  - 4
ER  -

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Author Information

Tandung Huynh

Business School, Hunan University, Hunan, China, Faculty of Accounting and Auditing in Industrial University, Hochiminh City, Vietnam
Guangming Gong

Business School, Hunan University, Hunan, China
Huyhanh Huynh

Faculty of Accounting and Auditing in Industrial University, Hochiminh City, Vietnam

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Plain Text BibTeX RIS

APA Style

Tandung Huynh, Guangming Gong, Huyhanh Huynh. (2013). Integration of Activity-Based Budgeting and Activity-Based Management. International Journal of Economics, Finance and Management Sciences, 1(4), 181-187. https://doi.org/10.11648/j.ijefm.20130104.11

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ACS Style

Tandung Huynh; Guangming Gong; Huyhanh Huynh. Integration of Activity-Based Budgeting and Activity-Based Management. Int. J. Econ. Finance Manag. Sci. 2013, 1(4), 181-187. doi: 10.11648/j.ijefm.20130104.11

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AMA Style

Tandung Huynh, Guangming Gong, Huyhanh Huynh. Integration of Activity-Based Budgeting and Activity-Based Management. Int J Econ Finance Manag Sci. 2013;1(4):181-187. doi: 10.11648/j.ijefm.20130104.11

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@article{10.11648/j.ijefm.20130104.11,
  author = {Tandung Huynh and Guangming Gong and Huyhanh Huynh},
  title = {Integration of Activity-Based Budgeting and Activity-Based Management},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {1},
  number = {4},
  pages = {181-187},
  doi = {10.11648/j.ijefm.20130104.11},
  url = {https://doi.org/10.11648/j.ijefm.20130104.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20130104.11},
  abstract = {Activity-Based Costing (ABC)/Activity-Based Management (ABM) was developed in the mid 1980s by Kaplan and it has been applied very popular in developed countries with obvious advantages. Although ABC system has more advantages than traditional systems, but in today’s competitive economic environment it has not met fulfilled provision of sufficient information for decision-making. The ABC/ABM system alone, however, lacks the ability to support information for managerial decisions. We can summary the limitations of single ABC in today’s business environment as follow: (1) ABC was originally developed because traditional costing appeared to be providing misleading product costs. Only single ABC using, it just provides an alternative way to trace costs to products, (2) lack of planning and control cost. ABC/ABM discusses a product has already been developed, has been incurred costs, and is ready to be marketed as soon as a price set, (3) limit in finding opportunities for innovation, (4) lack of support for short-term decision. How can we overcome these limitations of ABC/ABM? This paper draws the framework of integration of ABC/ABM with other management accounting methods as one way to overcome its limitation and innovation management accounting. In the cope of this paper, authors focus on one model in the framework that is the integration of ABB with ABM.},
 year = {2013}
}

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TY  - JOUR
T1  - Integration of Activity-Based Budgeting and Activity-Based Management
AU  - Tandung Huynh
AU  - Guangming Gong
AU  - Huyhanh Huynh
Y1  - 2013/08/10
PY  - 2013
N1  - https://doi.org/10.11648/j.ijefm.20130104.11
DO  - 10.11648/j.ijefm.20130104.11
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 181
EP  - 187
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20130104.11
AB  - Activity-Based Costing (ABC)/Activity-Based Management (ABM) was developed in the mid 1980s by Kaplan and it has been applied very popular in developed countries with obvious advantages. Although ABC system has more advantages than traditional systems, but in today’s competitive economic environment it has not met fulfilled provision of sufficient information for decision-making. The ABC/ABM system alone, however, lacks the ability to support information for managerial decisions. We can summary the limitations of single ABC in today’s business environment as follow: (1) ABC was originally developed because traditional costing appeared to be providing misleading product costs. Only single ABC using, it just provides an alternative way to trace costs to products, (2) lack of planning and control cost. ABC/ABM discusses a product has already been developed, has been incurred costs, and is ready to be marketed as soon as a price set, (3) limit in finding opportunities for innovation, (4) lack of support for short-term decision. How can we overcome these limitations of ABC/ABM? This paper draws the framework of integration of ABC/ABM with other management accounting methods as one way to overcome its limitation and innovation management accounting. In the cope of this paper, authors focus on one model in the framework that is the integration of ABB with ABM.
VL  - 1
IS  - 4
ER  -

Copy | Download