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This paper seeks to demonstrate an application of a methodology, which is based on the integration of three techniques, with the purpose of modelling activity‐based costing (ABC) in restaurants. The proposed methodology serves as a tool for effectively computing values of cost drivers in the restaurant industry, as well as making accurate cost estimations.

The methodology is based on the integration of three techniques: simulation modelling, association rule mining (ARM) and ABC. Simulation modelling is used to model process variability and produce a range of cost values, instead of a point estimate of the cost, by generating a range of values for the simulated cost drivers. The advantage of the proposed methodology lies on the effective utilization of ARM in the ABC model; it extracts dependencies between a cost driver, whose estimation is time‐consuming, with another cost driver, which can easily be calculated. These associations can assist the estimation of the empirical distributions of those cost drivers, which were difficult to calculate.

The extracted associations verify the hypothetical relations between the cost drivers. The output produced is more precise values of the cost drivers that are included in an ABC model and were difficult to estimate. More accurate cost estimate means better pricing decisions for the restaurant managers.

The proposed methodology is an innovative technique that provides more accurate accounting information in the restaurant industry.

Many studies, motivated by concerns for activity-based costing (ABC) implementation efforts being less than successful, have suggested that the lack of success in this area stems more from behavioral, as opposed to technical, factors. This concern for the behavioral aspects of systems implementation has also emerged from much of the more general information systems research examining determinants of implementation success. Accordingly, the purpose of this study is to determine if a popular process theory of motivation, expectancy theory, would be useful in explaining the motivation of managers to incorporate ABC information into their job. Data obtained from two experiments employing a judgment modeling methodology support the relevance of both the valence and force models of expectancy theory in this context. Further, the judgments provided by the subject managers suggest they perceive improved product cost accuracy as the most beneficial outcome of ABC use, followed by an equivalent appreciation for both an enhanced ability to communicate the underlying economics of the firm and to identify non-value-added activities. Additionally, subject managers exhibited a greater concern for the possibility that obtaining the data to maintain the ABC system would be difficult and costly than they did for concerns that the ABC information would increase the level of complexity of the information that they use.

This paper aims to examine whether using menu engineering (ME) together with activity-based costing (ABC) for menu analysis provides new insights into true menu profitability. The traditional ME approach only uses food costs to determine the contribution margin (CM) of individual menu items. This combined approach uses both food and traceable operating costs to estimate CMs more accurately.

An improved ME model was developed and tested in an oriental restaurant in Brazil. Direct observation of restaurant activities allowed most costs to be traced (not simply allocated) to individual menu items.

The results revealed small differences in the rankings between the traditional approach and ABC/ME, demonstrating that the integration of ABC with ME made it to possible to identify increased food-costs and lower CMs for all groups of menu items. The results also show that ABC methods are applicable to an oriental-style restaurant.

Just one restaurant and only 80 per cent of the menu were examined in this study. Future research should apply the model used here to other restaurant types located in different geographical areas to validate the approach.

The results suggest that ME can be improved upon by first assessing variable costs using ABC methods.

This paper combines two different analytic techniques (ME and ABC) into a new approach that reveals the true picture of profit and loss for a menu from a restaurant in Brazil.

The purpose of this paper is to describe the experiences of a wholesaler with time‐driven activity‐based costing (TDABC). Three research questions are addressed: How are complex logistics operations modeled by TDABC? Does TDABC provide more accurate cost information than activity‐based costing (ABC)? How is TDABC cost information used?

Case study research was performed at a Belgian wholesaler. Interviews were conducted. The cost and activity database was analyzed.

This case study illustrates that there are logistics operations that cannot be modeled using a single cost driver, as is done with ABC. TDABC uses time equations to estimate the time spent on each activity. The results herein show how the time equations can capture the different complexities, by including different terms or interaction terms in the time equations. The database analysis clearly demonstrates that TDABC provided more accurate cost information than ABC at this case company. ABC oversimplified 64 percent of the activities, and misallocated 55 percent of all indirect costs.

This study is one of the first, investigating the experiences with TDABC. The results are derived from analyzing all activities, at a single case company.

The study illustrates the technique of TDABC and provides a real company example of time equations in logistics. The users declared the TDABC model very useful for profitability reporting and profit management. The time drivers provided insight into the causes of excessive distribution and logistics costs.

This paper complements current discussion on cost drivers and subtasks and logistics costing.

This study extends the theoretical analyses of Duration-Based Costing (DBC), an alternative cost measurement system to Activity-Based Costing (ABC). DBC is simpler than ABC and uses the production cycle time to assign costs. This simplicity should allow DBC to be a better costing method for multiproduct firms that exhibit nonconstant returns to scale.

Data simulations for 1,000 cases and Data Envelopment Analysis (DEA) are used to analyze the production functions inside DBC and ABC models to determine their relative technical efficiency.

The results show that, for a given set of simulations, DBC shows more nonconstant returns to scale than does ABC. This corroborates prior research and suggests that a more complex costing system, such as ABC, may not always match the production technology of a multiproduct firm. Thus, DBC may have a higher level of accuracy than does ABC for firms that exhibit nonconstant returns to scale.

Since DBC has only recently been theoretically developed, this study is the first to analyze the relative technical efficiency of DBC compared to ABC.

This study should bring some further awareness of the implications of alternative costing methods. The limitation of DBC is that it does not capture other factors not driven by the production cycle time that could be necessary for management decision making. However, DBC is better for multiproduct firms than a more complicated costing system and does help decision makers determine whether the production process is operating efficiently. It is imperative that firms choose which costing methods fit the firm’s needs and economic structure.

This paper aims to explore how different motives for implementing activity based‐costing may affect the implementation process. It focuses on the factors that affect different stages of the implementation process.

The paper uses case studies of two different business units of the same company which approached ABC implementation with different motivations. It is informed by administrative theory and institutionalist framework which draws on concepts from both old institutional economics and new institutional sociologists theory.

The paper shows how administrative and institutional factors affect different stages of the ABC implementation process and that the importance of success factors for implementation may depend on the level of implementation stage, and motivation for change. For instance, the quality of information system is very important at the adaptation and infusion stage.

The paper uses case studies that focus on two types of motivation for change. Further research work is needed that would examine other types of motivation for adopting accounting innovation to support the findings.

The empirical evidence results of this study can provide guidelines for companies either planning or implementing ABC.

The theoretical framework developed suggests that administrative theory reveals the practice (action) involved in the implementation, whereas institutional theory reveals the broader (macro) factors which shape the internal (micro) processes of implementation.

The purpose of this research paper is to apply the ABC model and examine the attitudinal segmentation of online consumer in India in terms of internet usage, perceived risks, website attributes, intent to do online purchase in future and preference of website attributes.

A structured questionnaire was administered to 600 online consumers using field and online survey mediums. The logit analysis was applied to arrive at segmentation of online users.

Findings show how attitudes are different of online users when they were segmented based on internet usage. This segmentation showed attitudes that were paradoxical in nature. To explain this paradoxical behaviour of online buyers, this study applied the logit analysis. The online users were further examined applying the ABC model of attitude. Three distinct segments of online users emerged. They are: CAB, CBA and BCA.

The findings of this paper will be useful for online retailers who want to start e-commerce business in India. The findings are also useful for designing appropriate promotion and marketing strategies to entice online users to become online buyers.

The key contributions of this paper are the new insights from using the ABC model. Based on usage of internet in number of hours, online buyers could be segmented into four groups. On further analysis using ABC model, this studied showed that a better segmentation of online buyers is possible and that is called attitudinal segmentation. The BCA attitudinal segment is a finding of this study and is unique to this research. This has not been done using Indian online buyers and this adds to the originality of the study.

This paper presents some simulation‐oriented techniques, particularly the resource allocation point (RAP) heuristic rule, for an activity‐based construction (ABC) simulation that requires only one kind of element to model construction operations. RAP heuristic rule provides the simulation with the decision‐making ability for allocating limited resources during simulation. Predefined entity management strategies control the movements of simulation entities so as to model some complex features of construction operations. An activity object‐oriented (AOO) simulation strategy based on object‐oriented approach for the implementation of the ABC simulation by regarding activities as objects controls the mechanism of the ABC simulation by checking only relevant activities at certain time, other than checking all activities for each simulation time unit. An easy‐to‐use animation aims at enhancing understanding of simulation and assisting modellers in verifying and validating model.

An Activity-Based Costing (ABC) system generates a significant amount of detailed, complex data for management to evaluate and use, potentially reducing decision-making effectiveness. The purpose of this paper is to show how reducing the magnitude of detailed information that an ABC system provides can increase decision-making effectiveness.

This study develops a theoretical Weighted Average ABC model by taking ABC information and rearranging it to enhance decision-making effectiveness.

Weighted Average ABC provides cost assignments that are approximately the same to those of ABC in most situations. In Weighted Average ABC, the weighted average consumption ratios provide relevant decision-making information to determine which products are costlier. To reduce costs, management can focus on those costlier products or services and can request from the cost accountants additional detailed information concerning those costlier products or services.

This study adds to the ABC literature by developing Weighted Average ABC. However, the limitation of this study is that no actual data could be obtained from a company that uses ABC, and thus, this study develops an analytical model.

Weighted Average ABC may increase decision-making effectiveness in situations when managers need to make fast decisions.

This study develops a theoretical Weighted Average ABC model in which the weighted average activity consumption ratios of the product lines and the total overhead costs are the variables needed, thus skipping Stage 1 of ABC. This, in turn, reduces the amount of information provided to management. Accordingly, weighted Average ABC provides timelier and more manageable information for decision making.

The study was designed to examine specific issues relating to the usage and perceived success of activity‐based and traditional costing systems. Data were collected from management accountants operating at senior management level in large companies in manufacturing, financial services and other non‐manufacturing sectors.