By Topic

Integrating Activity-Based Costing and Theory of Constraints for Making Product-mix Decisions

Sign In

Cookies must be enabled to login.After enabling cookies , please use refresh or reload or ctrl+f5 on the browser for the login options.

Formats Non-Member Member
$31 $13
Learn how you can qualify for the best price for this item!
Become an IEEE Member or Subscribe to
IEEE Xplore for exclusive pricing!
close button

puzzle piece

IEEE membership options for an individual and IEEE Xplore subscriptions for an organization offer the most affordable access to essential journal articles, conference papers, standards, eBooks, and eLearning courses.

Learn more about:

IEEE membership

IEEE Xplore subscriptions

3 Author(s)
Wang Fang-jun ; Xi''an Jiaotong Univ., Xian ; Chang Hua ; Ou Pei-yu

This paper proposes an ABC-TOC model to make optimal product-mix decisions based on the assumptions of static analysis and maximization of profitability. In this model, activity cost behavior is analyzed using ABC; the degree of control on activity capacity is set as an endogenetic variable; the impact of the opportunity costs of controllable activity capacity on decision is considered; relative constraints are identified by using TOC. A numerical study indicates that ABC-TOC model is a more general product-mix decision model. When the control degree on activity capacity is zero, the optimal product-mix derived from ABC-TOC model is the same as those from TOC. While full control on activity capacity and no opportunity costs, the optimal product-mix derived from ABC-TOC model is the same as those from ABC.

Published in:

Management Science and Engineering, 2007. ICMSE 2007. International Conference on

Date of Conference:

20-22 Aug. 2007