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Operations Research, Systems Engineering and Industrial Engineering Commons

Open Access. Powered by Scholars. Published by Universities.®

2001

Activity-based accounting

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Full-Text Articles in Operations Research, Systems Engineering and Industrial Engineering

Combining Activity-Based Costing With The Simulation Of A Cellular Manufacturing System, Paul Savory, Robert Williams, Rodney Rassmuseun Jan 2001

Combining Activity-Based Costing With The Simulation Of A Cellular Manufacturing System, Paul Savory, Robert Williams, Rodney Rassmuseun

Industrial and Management Systems Engineering Faculty Publications

Discrete-event simulation is one of the most effective techniques for analyzing a manufacturing system. Unfortunately, little attention is given to using simulation models to estimate the economic impact of a proposed system configuration. This paper defines how activity-based costing (ABC) concepts can be incorporated into a discrete-event simulation model. Special emphasis is on demonstrating how decision making can be aided by having the simulation create a detailed “Bill of Activity” describing costs associated with manufacturing a part. The integration of ABC and simulation is illustrated by evaluating the impact of a proposed manufacturing cell configuration. The additional costing information aids ...