Profesa

7. References
Carter, W and Usry, M. (2002) Cost Accounting, 13th edition, Thompson Learning.
Latshaw, C. A. and Cortese-D, Teresa M. (2002) Activity-Based Costing: Usage and Pitfalls,
Review of Business, Winter.
Cokins, G. (2001) If ABC is the Answer, What is the Question?, Activity-Based Cost
Management in Government.
The Fookien Times Philippine Yearbook, Fookien Times, Manila, (2001).
Kotler, P. (2000) Marketing Management, Millennium Edition, (Prentice Hall, New Jersey).
Roztocki, N., Valenzuela, J., Porte, J., Monk, R., Needy, K. (1999) A Procedure for Smooth
Implementation of Activity Based Costing in Small Companies.
Olsen, R. (1997) Activity-Based Costing: A Decision-Making Tool, The Manufacturing Report,
Lionheart Publishing, Inc.
Shields, M. D., (1995) An Empirical Analysis of Firms’s Implementation Experiences with
Activity-Based Costing, JoA. Traditional Cost Accounting System Today
Historically, manufacturing and cost accounting became so linked because of the necessity to
determine profit on goods produced, sold and shipped. Early decisions made within this
relationship fostered a certain bench mark or standard upon which most of the manufacturers in
the earlier times will use as method. In the past, using direct labor as basis for the computation of
overhead costs to be charged on the products manufactured would make sense, since it has
contributed to the largest percentage of the cost that was expended in manufacturing products
such as, automobiles, trains, garments, etc. This procedure of allocating costs incurred in
production, other than direct materials and direct labor costs was known as the traditional costing
method.
Despite the fact that it is over 75 years old, most companies still use standard cost
systems to value inventory for financial statement purposes and for many other management
purposes as well. This standard cost system has some advantages for financial statement
purposes (e.g., for simplicity and...