Internet of Things (IoT) as an Innovative Strategic Cost Management Tool

This study aims to contribute to the planning process on product management. To do so it presents a integrated framework based on strategic cost management, using the methods target costing, activity-based cost (ABC) based on the product lifecycle. This proposal was structured as it follows: Phase 1: determining Target Cost; Phase 2: determining ABC defrayal to the light of the defrayal based on the product lifecycle. The research was elaborated to the light of specialized literature, from which we extracted the variables to formulate the methodology. After that, to show the feasibility and plausibility of the method we applied a hypothetical case study based on the development process of a product to the light of a course/MBA in Business Management in Institution of Higher Education in Brazil. The results were satisfactory and validated the proposal suggested. The survey findings indicate that the integrated method between ABC, target costing and products lifecycle applied in MBA Business Management is quite satisfactory. Keywords: Framework, target costing, activity-based cost (ABC), costing based on product life-cycle, product development process (PDP);

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Web based cost management tool prototype development using temporal-activity based costing (Temporal-ABC)

10.32920/ryerson.14657724.v1 ◽

2021 ◽

Author(s):

Mourougavelou Vaithianathan

Keyword(s):

Management System ◽

Cost Management ◽

Plant Performance ◽

Management Tool ◽

Activity Based Costing ◽

Product Cost ◽

Web Based ◽

Prototype Development ◽

Cost Management System ◽

The Cost

The cost management system is a powerful tool for managers to understand manufacturing plant performance. It is essential for any organization to develop a cost management system to estimate the product cost and to account actual cost spent for the product manufacturing. The Activity Based Costing (ABC) system has recently attracted the attention of many companies and is considered to provide better information about the cost pattern and the relationship between resources and activities. However, a survey of earlier research reveals that there are several difficulties to estimate the true product cost due to selection of overhead drivers to activities. To overcome these difficulties Temporal-ABC has been developed by Dr. K.D. Tham. In the first part of the report, costing system implementation issues are studied through real-time case studies. Then, research has been conducted and web-based proptotype application is developed using Temporal-ABC through collaboration with a world-class electronics industry - Celestica Inc. Toronto, Canada. The developed prototype demonstrates the application of Temporal-ABC for cost estimation at Celestica.

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