Work

An application of activity-based costing in the chicken processing industry: a case of joint products

Year: 2017

Type: article

Abstract: A great deal of research has been presented on the application of activity-based costing (ABC) in the manufacturing and service industries. In the field of agribusiness, which focuses uniquely on joint products, few studies exist that illustrate applications of ABC. This research has therefore applied ABC to a food company, concentrating on fresh and frozen chicken processing production. The basic process of ABC, based upon five steps, was applied and demonstrated the difficulties in applying cost data collection, identifying activity and cost drivers, as well as collecting driver data. The results also revealed significant differences in unit costs derived by ABC and the company’s existing cost system, particularly within frozen food products. This may suggest the possibility of distorted cost allocations within the company’s current costing system.

Source: The International Food and Agribusiness Management Review

DOI: 10.22434/ifamr2016.0017

Authors: Panravee Kabinlapat, Siriluck Sutthachai

Institution: Khon Kaen University

Language: English

Topic: Accounting and Organizational Management

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Zero hunger

Open Access status: gold

Estimated APC paid: $1,078