Proposed accounting framework for measuring and analyzing standard cost deviations Based on Time-Driven Standard Activity-Based Costing "applied study"shaheen, mohamed
AbstractIntroduction: Local and international companies operating in the Egyptian market face many challenges, especially those related to competition, especially after the entry into force of the agreements regulating the movement of international trade. This has led to the elimination of many customs barriers and the flow of goods and services between countries in local and international markets. Both in the form that resulted in the growing and intensifying degree of competition between these companies and the threat of their continuation and survival in the business world. Because of the companies' need for a range of advanced tools related to competition and operating conditions, theoretical and applied research efforts have been combined to provide a range of tools and methods needed in the current operating environment. The objective of this study is to propose an integrated framework for how to develop the standard cost systems currently applied in companies. This framework consists of the integration of two cost inputs, one of which is standard costs and the other is the introduction of cost measurement based on time-driven activity. This integration and selection stems mainly from the actual developments associated with using the two inputs in an integrated manner in practice, as well as the actual needs of corporate information management in the modern operating environment. This proposed framework for the development of standard cost systems can be named as the introduction of standard cost measurement systems Time-oriented activity. It is possible to say that there are many drivers that lead the development process, the most important of which is the attempt to focus on addressing the current deficiencies resulting from the application of the standard cost systems under the current production environment, and also taking advantage of the remarkable development in the traditional cost measurement systems by applying the input The measurement of costs based on time-driven activity, as well as trying to overcome the application problems that impede the use of both inputs widely in enterprises and to serve the changing and renewable management needs of information in the current environment. Research problem: It is possible to say that the changes in the operational environment as well as in the information systems used have left significant and substantial impact on the performance of companies and their competitiveness and on the tools that were used for the purpose of building judgments on the performance of companies, and emerged many opinions and studies that call for the loss of standard cost systems in the traditional form of the supervisory role In the changing environment, and that they are unable to meet their requirements. Based on the above, this paper discusses how standard cost systems are developed to restore their monitoring role in the modern operating environment. In this regard, a group of research has proposed several alternatives to the development of standard cost systems. They are used under the analysis of traditional deviations and add some aspects of the activity that were not subject to calibration. The current research proposes a development approach through the integration of standard cost systems and the time-based cost measurement approach with the aim of taking advantage of the benefits produced from both inputs and overcoming the current deficiencies in standard cost systems. This merger results in the proposed method of cost measurement systems Based on time-driven activity. This will help to formulate a conceptual framework for the development of standard cost systems under the current operating environment in such a way as to activate the normative cost control role and help to overcome the current shortcomings when applied in practice. Based on the above, it is possible to crystallize the problem of research in the form of the following set of questions: • What are the objectives and characteristics that must be met in the development required in standard cost systems to meet changes in the modern manufacturing environment? • What is the intellectual framework governing the process of integration and integration between standard cost systems and the cost-based approach to time-based activity, and what are the results of this integration? How can this proposed framework be applied in industrial firms? What are the different levels of application of the proposed curriculum? What are the steps in practice? • The set of previous and other questions is the basic premise of this research. research importance: The importance of this research is based on the following considerations: 1. The importance of standard cost systems in general and cost standards in relation to planning, control and decision-making processes in practice. Therefore, the development of this method is consistent with the modern operating environment. 2. Trying to deal with the lack of research, especially the application of the development of standard cost systems, by presenting a set of proposals for development, and the results of the application of these proposals. 3. To sensitize the management of Egyptian companies to the importance of using standard cost systems in a sophisticated manner, to achieve competitive advantages both in the local market and foreign markets. Research Objectives: This research aims to achieve the following set of objectives: • Proposing a research study to deal with the problem referred to as an input to the continued research to develop standard cost systems while specifying the objectives and characteristics that must be met in the development process. • Statement of elements of the intellectual and theoretical framework that governs the development process of standard cost systems by integrating the cost accounting approach based on time-driven activity and standard cost systems. • Explain how this framework and the management position of one of the units operating in the Arab Republic of Egypt is applied. Results and recommendations: A review of accounting literature revealed that traditional cost systems lost (because of their reliance based on allocation and allocation of costs, mostly based on size), much of their credibility and contribution to adding value to the decisions taken by management. Because they are well-designed systems that allocate indirect costs in a way that considers causal relationships and helps to detect activities that do not add value. Cost-based measurement systems are characterized by accuracy but need to have many details of information and more Ward applied. At the same time, standard cost systems have been subjected to many criticisms in their traditional form under current operating conditions, and there has been a clear need to develop standard cost systems to cope with management needs in the current operating environment. During this research, the researcher analyzed the previous studies and research on the standard costs and the measurement of costs based on the time-driven activity. By analyzing these studies, the researcher found a research gap related to how to develop the standard cost systems while using the idea of measuring costs based on time- The researcher introduces the proposed approach to measure standard costs based on time-driven activity. The researcher presented the theoretical framework of this proposed approach, explaining the basic concepts and pillars used in constructing the proposed approach. The researcher then went on to explain the motives for mixing the standard cost systems and the cost-based approach to time-based activity. And to arrive at the proposed portal, and then explained the researcher components of the proposed entrance and levels of application and steps of practical application. The researcher then made a statement on how to apply the measure of standard costs based on the time-driven activity on one of the integrated water plants operating in the Arab Republic of Egypt to illustrate how the method is applied in realistic form in one of the national projects undertaken by Egypt to develop services Infrastructure and the launching of the Egyptian economy. The researcher found through the research that there is a set of observations that relate to the practical application of the proposed entry, the most important of which: • This approach creates a kind of integration in application between the standard costs applied to the direct cost items and the application of time-based cost measurement to indirect industrial cost items to provide a more accurate analysis of the causes of deviations in relation to the consumption of resources available to the project. • The introduction of the standard cost measurement approach based on time-driven activity assists in a radical shift in the philosophy of standard costs, from cost control, extraction and analysis of deviations, to effective use in cost reduction, by eliminating the untapped energies of resources available for use and transforming them into Other uses, which guide the consumption of resources. • This approach is one of the new models in corporate cost management, characterized by taking R & D costs as a starting point for accounting, after-sale service costs as a terminal point, and covering a whole range of activities aimed at serving management in decision making. • The implementation of the proposed portal is different from that of standard cost systems in that it depends on the construction of a set of functional centers in the form of different resource pools. The cost of unit consumption from the resource is determined over time and each product is loaded according to the standard consumption of each The resource pools, thus provides a logical building for the reasons for resource consumption within the company and compared with the actual consumption of each complex of resource pools. • The main objective of this proposed approach is to focus continuously and clearly on the management and operation of activities in a highly efficient manner. Therefore, the focus of this approach is on the volume of resources planned and the standard unit cost of the company's resources. • The use of the proposed approach in the calibration of indirect industrial costs provides detailed information on the set of resources used in the production of the product, which allows the administration to identify the part of the energy of each resource and thus can deal with the unused part by cancellation or use in another place in a form that can the company of continuous improvement in the standard cost and approach of target costs.
|Keywords||Time-Driven Standard Activity-Based Costing||Issue Date||Feb-2018||Publisher||مجلة الفكر المحاسبي ،قسم المحاسبة والمراجعة جامعة عين شمس||Journal||مجلة الفكر المحاسبي ،قسم المحاسبة والمراجعة جامعة عين شمس ، العدد الأول، الجزء الثاني ، السنة الثانية والعشرون ، ابريل 2018.||URI||http://research.asu.edu.eg/handle/123456789/1726|
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