TY  - CHAP
AB  - This study examines the impact of three cost accounting system (CAS) designs – traditional costing, activity-based costing, and time-based accounting – on manufacturing performance as measured in terms of demand fulfillment rate, cycle time, and net operating income – within a flexible, pull-production environment. A simulation approach allows for the direct comparison of these CAS designs under various scenarios. The introduction of supply and demand stochasticity, along with differing levels of product mix complexity modeled in environments with differing levels of manufacturing overhead burden, adds practical significance to the results. The fact that no single CAS outperformed along all performance measures has considerable implications for management accounting practice vis-à-vis manufacturing strategy, in particular for competitors in time-based industries. Also, this is the first known study to operationalize and test the theoretical time-based accounting methodology, further validating the efficacy of simulation methodologies in cost management contingency research.
VL  - 18
SN  - 978-1-84950-755-4, 978-1-84950-754-7/1474-7871
DO  - 10.1108/S1474-7871(2010)0000018007
UR  - https://doi.org/10.1108/S1474-7871(2010)0000018007
AU  - Hutchinson Robert
ED  - Marc J. Epstein
ED  - John Y. Lee
PY  - 2010
Y1  - 2010/01/01
TI  - Quantifying the impact of cost accounting system design on manufacturing performance: a simulation approach
T2  - Advances in Management Accounting
T3  - Advances in Management Accounting
PB  - Emerald Group Publishing Limited
SP  - 81
EP  - 109
Y2  - 2024/09/26
ER  -