SYNOPSIS

In this first part of a two-part paper, we develop a common platform to characterize several popular approaches for computing product costs. We describe four kinds of product costing systems: traditional volume-based systems, activity-based costing systems, time-driven activity-based costing systems, and resource consumption accounting. We employ a continuing numerical example to illustrate the commonalities and differences among these systems. In Part 2 of the paper, we evaluate the systems along multiple dimensions and offer suggestions for how we might blend the best features of various approaches.

You do not currently have access to this content.