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Activity‐based Costing in Non‐standard Route Manufacturing

Lizhang Zhuang (Glasgow Polytechnic, Scotland, UK)
George Burns (Glasgow Polytechnic, Scotland, UK)

International Journal of Operations & Production Management

ISSN: 0144-3577

Article publication date: 1 March 1992



Looks at how Activity‐Based Costing (ABC) may be implemented in sectors consisting of Non‐Standard Route Manufacturers (NSRM). Following a brief summary of ABC, introduces the concept of NSRM. Within the context of a selected knitwear company, identifies a three‐stage procedure with attention focused on the first stage. product classification. A three‐division model was developed and proved more satisfactory, when tested, than a five‐division one. The finalized product classification scheme based on this model is then devised to reduce the number of product categories from 250 to nine. With the classification scheme gives an example which illustrates how ABC works compared with the previous costing approach.



Zhuang, L. and Burns, G. (1992), "Activity‐based Costing in Non‐standard Route Manufacturing", International Journal of Operations & Production Management, Vol. 12 No. 3, pp. 38-60.




Copyright © 1992, MCB UP Limited

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