DG Fashions (pvt) Ltd.

Assignment No. 1

Group-08

August 2014

BBA2202: Cost and Management Accounting

Course Coordinator: M.S.Nanayakkara

Department of Accounting and Finance

Faculty of Management and Finance

University of Ruhuna

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Certification

We hereby certify that the material presented in this report is original and no other persons’ work

or ideas have been used without acknowledgement.

1. MF/2012/3221 M.S. Siddeq

2. MF/2012/3225 H.P.M. Mihirani

3. MF/2012/3246 K.R. Dulakshi

4. MF/2012/3351 N.W.U.D.G.K.G. Jayasekara

5. MF/2012/3389 M.K.M. Ihraz

6. MF/2012/3400 H.M.P. Caldera

7. MF/2012/3404 G.A.K. Dayarathna

Submission Date: 22/08/2014

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Acknowledgement

We are really grateful because w e managed to complete our Cost and Management Accounting

assignment within the time given by our Ms. M.S.Nanayakkara. This assignment cannot be

completed without the effort and co-operation of our group members, Dulakshi, Gayan Kithma,

Madhini, Medha, Sabry & Raz. We also sincerely thank our lecturer of Cost and Management

Accounting BBA 2202, Ms. M.S.Nanayakkara for guidance and encouragement in finishing this

course. Last but not least, we would like to express our gratitude to the financial manager of DG

fashions (pvt) Ltd and the staff for the support and willingness to spend time with us and proving

information.

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Content

Acknowledgement 03

Table of Content 04

1.0 Introduction 05

2.0 Overhead Allocation 05

2.1.1 Overhead Allocation of DG Fashions (pvt) Ltd 06

2.1.2 Analysis of the method 11

2.2.1 Evaluation of Existing Method 13

2.2.2 Benefits of Existing Costing Method 14

2.2.3 Limitations of Existing Costing Method 15

2.3.1 Implementing an alternative method 17

2.3.2 Activity-Based Costing 17

Comparison of traditional costing and ABC 17

Application 18

Steps in development of an ABC System 19

Reported benefits 20

Reported drawbacks 20

2.3.3 Opportunities in implementing ABC method 20

2.3.4 Barriers in Implementing ABC method 21

3.0 Conclusions 23

References 24

Appendices 25

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Introduction

DG Fashions is an apparel Company which was established in early 1999 in Dickwella, Mathara,

Sri Lanka. They have been dealing with the Manufacturing of lady’s bra, night wears, skinners,

lingerie and gents undergarments for over 12 years. With the experience accumulated though the

years, they are known as one of the most reliable suppliers in Sri Lanka in the product range for

its trend-lead styles, color of the season, fine quality and fast delivery. D.G. Fashions now run

factories that produce woven, men, and kids’ products. Their concept is to provide the best they

can in terms of product quality and price competition.

Currently DG Fashions has more than 500 members in all departments and they have their own

state of art production facility. They have their own steady apparel processing factory, advanced

equipments, high skilled work force and first class quality management system.

DG Fashions company takes the quality as the basis seeks development through goodwill and

sticks on the principle of providing products of high quality and low price for internal clients. Due

to high starting points they have decided to march into the international market. To adjust to the

customs & convention of different region of country, the design department of the company

design products of different styles to satisfied the demand of different clients

Vision

DG Fashions are around the world by year 2020

Mission

To provide customer satisfaction oriented products to the market at all locations through

innovations, highest standards & contemporary developments.

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2.0 Overhead Allocation

Businesses use costing methods to allocate costs to various products and services. They add up all

costs of manufacturing a product in order to assign a total cost to it. This includes direct costs,

such as labor cost, and overhead costs, such as depreciation on machinery. The allocation of

certain overhead costs to produced goods is required under the rules of various accounting

frameworks. In many businesses, the amount of overhead to be allocated is substantially greater

than the direct cost of goods, so the overhead allocation method can be of some importance.

There are two main overhead allocation methods

Traditional costing method

The allocation of manufacturing overhead (indirect manufacturing costs) to products on

the basis of a volume metric such as direct labor hours or production machine hours. As

manufacturing becomes more sophisticated the manufacturing overhead costs usually

increase while the direct labor hours or production machine hours decrease. Hence, the

direct labor or machine hours are unlikely to be the root cause of the manufacturing

overhead.

Activity Based costing Method (ABC)

Activity-based costing (ABC) is a costing methodology that identifies activities in an

organization and assigns the cost of each activity with resources to all products and

services according to the actual consumption by each. This model assigns more indirect

costs (overhead) into direct costs compared to conventional costing.

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2.1.1 Overhead Allocation of DG Fashions (pvt) Ltd.

The DG Fashions Company currently uses Traditional Costing method also known as practical

capacity method to allocate overhead cost per unit. Although practical capacity method of

allocation method has been criticized by many researchers as being ineffective in allocating

overheads to unit price of a product or service, other studies have emphasized that no particular

method can give absolute accuracy, but carefully complied and used in appropriate circumstances,

one or more of these should provide acceptable results.

The company uses the direct labor hours as the capacity to compute overheads rate per unit for

financial purposes.

- Working hours per day - 8 hrs.

- Working days per month - 23 days

- Direct labors - 500

Direct labor hours 8*23*500=92000

Overheads per unit = Total Overheads per month (refer table 01)

Total units per month

= 5,745,562.14

92,000

= 62.45

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The following information is about the cost spent to produce a men’s T-shirt by DG Fashions

which they export to USA.

Note: some of the figures we have used bellow are hypothetical and they are used only for

studying purposes.

Table: 01

Overheads

Amount

(LKR)

Salary 3,011,935.14

EPF 526,432.50

ETF 78,964.98

Electricity-0203 75,482.88

Electricity-9792 89,706.88

Water 14,324.80

Maintenance-Factory 26,879.00

Machine Repairing 5,970.00

Depreciation Plant & Machinery 272,194.14

Depreciation Building 50% 61,135.53

Depreciation Furniture & Fitting 33,546.16

Depreciation Motor Vehicle 50% 38,917.89

Printing Stationary 50% 43,209.25

Postage 50% 1,007.50

Telephone Exp-SL Telecom 4,255.00

Traveling-50% 4,385.00

Cleaning 50% 13,964.50

Transport Expenses-Nilwella 24,230.00

Transport Expenses-Gandara 63,180.00

Transport Expenses-Walakanda 68,172.00

Transport Expenses-Aparekka 59,280.00

Transport Expenses-Tangalla 72,400.00

Transport Expenses-Radampala 36,800.00

Transport Expenses-Beliaththa 59,000.00

Tea & Meals 22,388.00

Medical & Medicines 2,607.00

Newspapers & Other Office Exp. 1,415.00

Security Expense 81,250.00

Repair & Services-KB 5940

Fuel & Oil-KB 5940 1,200.00

Fire Insurance 8,830.80

Financial Cost-20% 922,498.20

Provision For Recruitment Charges 20,000.00

Total Expense 5,745,562.14

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Table: 02

COST SHEET

Product Men’s T-Shirt Yarn dyed feeder stripes

Style no: XYZ Country USA

Buyer: ABC Fabric Viscose jersey

GSM/width 150/34-31"

Particulars Details

Amount

(LKR)

Fabric Costing

Yarn Price as per supplier

list Per Kg 500.00

Knitting charges Per Kg 50.00

Greige Fabric Cost Per Kg 550.00

Average dyeing cost

40.00

Weight loss on dyed fabric: 9.00% 53.10

Fleece brushing /Peaching - -

Loss Due To Printing - -

Sub total

643.10

Interest on yarn

prices:/margin 10.00% 64.31

Dyed Fabric Cost: 707.41

Garment costing

Avg. Fabric Consumption

(gram) 210.00 148.56

CMTP Charges

Stitching: 40.00

79.00

Cutting: 5.00

Finishing: 12.00

Packaging: 9.00

Embellishment 5.00

Trims 8.00

Sub Total

227.56

Overhead cost

62.45

Margin (after overhead) 20.00% 58.00

Ratio/Rejection 4.00% 11.60

Charges for On Board

2.00

Total price of a apparel 361.61

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Further details of Packing, Trims and Embellishment costing have been shown in the following

table.

Table: 03

Trims

Particulars Consumption Rate

Amount

(LKR)

M/label 1

2.00

W/care 1

1.00

Tag N/a

0.00

Thread 10 mtr

4.00

Fusing N/a

0.00

Twill tape N/a

0.00

Mobilon tape 30 cm

1.00

Zipper N/a

0.00

Patch label N/a

0.00

Button N/a

0.00

Total

8.00

Packing materials

Tissue N/a

0.00

Board N/a

0.00

Hanger N/a

0.00

H/tag 1

3.00

Poly bag 1

3.00

Blister N/1

0.00

Carton 1/10

3.00

Other

0.00

Label logo

0.00

Total

9.00

Embellishment

Embroidery/appliqué N/a

0.00

Printing N/a

0.00

Rhin stud N/a

0.00

Lace N/a 0.00

Rib N/a

0.00

Collar N/a

0.00

Crochet lace N/a

0.00

Enzyme wash N/a 0.00

Dori

5.00

Total

5.00

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2.1.2 Analysis of the method

According to the cost and management account, the company maintains two sets of departmental

rates in allocating production overheads from the two production cost centers: (1) annual

overheads rate and (2) the after-the-fact monthly overhead rates. It was also revealed that the

company uses the single rate method of cost allocation. With this method, cost in each cost pool is

not classified into a variable-cost pool and a fixed-cost pool, with each using a different cost-

allocation base but rather allocates costs in each cost pool to cost objects using the same rate per

unit of the single allocation base.

Traditional costing looks to divide the total overhead cost of a product by labor hours. This

calculation determines the overhead cost of the product per item. The overheads are in this

equation are only estimation. If traditional costing for a product means that each unit costs

Rs227.56, the company adds its profits, estimated ratio of rejection and the charges for on board

to the product. If this product is then sold for Rs361.61, then the company may assume a profit of

Rs58.00 (20%) per item; however, if the estimated cost of the product is wrong, then the company

runs the risk of making less money than expected.

This accounting system relies upon the almost arbitrary arrangement of indirect costs. There is

also little attention to the causes of cost and cost variance, or the difference between estimated

costs and real costs. A consequence of this approach can be improperly costing an item. If a

product’s cost is not accurately known, it is more difficult to predict its profitability.

The system of traditional costing is sometimes considered to be less favorable than newer costing

systems, such as ABC and lean costing, because it does not look at cause and effect. Other types

of allocation systems look at each activity and assign a cost to it. In comparison, traditional

costing lumps all the activities together and attempts to guess their overall cost.

Traditional costing does offer an advantage when direct costs are high. This is the case in

manufacturing, where costing can be applied to such overhead categories as material costs, labor

costs, and unit costs. In the latter half of the 20th century, the proportion of direct costs fell

against the proportion of indirect costs, making traditional costing ineffective. It is even more

ineffective when used in multi-product companies.

One of the major advantages of traditional costing is its simplicity; it is easy to calculate overhead

rates. This means that businesses across the world understand the traditional cost accounting

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system. These systems are also relatively cost effective themselves, making them cheaper than

ABC methods.

The use of traditional costing method is Traditional costs that are viewed as reasonable by

employees can promote economy and efficiency. They provide benchmarks that individuals can

use to judge their own performance. Can greatly simplify bookkeeping.

The actual costs of each job, the standard costs for materials, labor, and overhead can be charged

to jobs. Traditional costs fit naturally in an integrated system of responsibility accounting. Can be

used to arouse interest in a subject, the standards establish what costs should be, who should be

responsible for them, and what actual costs are under control.

The final product absorption costing take consider all the costs that contribute to the final product

also include both indirect cost and direct costs that. Can be traced directly to the product such as

direct materials and direct labor prefer to cost.

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2.2.1 Evaluation of Existing Method

The existing method used to allocate in DG fashions is Traditional costing method. Traditional

costing assigns manufacturing overhead based on the volume of a cost driver, such as the amount

of direct labor hours needed to produce an item.

Many manufacturing companies use the traditional costing system to assign manufacturing

overhead to units produced. Users of the traditional costing method make the assumption that the

volume metric is the underlying driver of manufacturing overhead cost. Under traditional costing,

accountants assign manufacturing costs only to products. Traditional accounting fails to allocate

nonmanufacturing costs that also are associated with the production of an item, such as

administrative expenses. Companies commonly use traditional accounting in external financial

reports because it provides a value for the cost of goods sold.

Traditional costing recognizes fixed costs in product cost. If we take DG FASHIONS annual

figures, we will get to know that there are several fixed cost that had to bear by the company, for

instance, salary (including EPF & ETF) 3,617,331, depreciation of plant, machinery & building

333,329 security 81,250 fire insurance 8830, and also financial cost 922,498. These are some of

the important fixed costs that need to bear by the company which could cost around 5,000,000.00

approx. So that these costs need to be allocated to the final output for appropriate pricing of the

products. However we will find out some problems when we try these costs to allocate into the

products, because these costs does not have a specific cost driver to split it into its

causes/usages… thus traditional costing uses all of these costs as common and allocate into final

product. As it is suitable for determining price of the product. Thus, the pricing based on

traditional costing ensures that all costs are covered.

Under the traditional method of allocating factory overhead (manufacturing overhead, burden),

most of the factory overhead costs are allocated on the basis of just one factor such as machine

hours or direct labor hours. In other words, the traditional method implies there is only one driver

of the factory overhead and the driver is machine hours (or direct labor hours, or some other

indicator of volume produced).

In reality there are many drivers of the factory overhead: machine setups, unique inspections,

special handling, special storage, and so on. The more diversity in products and/or in customer

demands, the bigger the problem of allocating all the costs of these various activities via only one

activity such as the production machine's hours.

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Under the traditional method, the costs of performing all of the diverse activities will be contained

in one cost pool and will be divided by the number of production labor hours. This result is one

average rate that is applied to all products regardless of the number of activities and the

complexity of those activities. Since the costs of many of the diverse activities do not correlate at

all with the number of production labor hours, the resulting allocations are misleading.

2.2.2 Benefits of Existing Costing Method

A firm will consider the benefits of traditional costing when it determines the best accounting

methodology for reporting its financial activities. The benefits of traditional costing must be

weighed against the benefits of other types of accounting.

Easy to Apply

Traditional costing is relatively easy to apply. It's easy for managers to trace all direct costs

associated with a product, including labor and direct material costs. It's trickier to assign overhead

costs to different products. In a traditional manufacturing environment, direct labor hours,

machine hours were a simple way to apportion overhead costs. At the time traditional costing

methods were developed, direct labor was typically the biggest cost of production. Therefore, it

was used as a proxy to allocate overheads too, with managers assigning higher overheads to

products with higher direct labor hours.

Unit Cost

Traditional costing enables a business to estimate to its best ability the cost of producing one unit

of each product. This will include a look at different types of costs that factor into making the unit

product. For example, the cost of a plastic coffee mug might include the cost of raw materials,

labor or machine hours and a percent of the company's overhead costs.

Association with Direct Labor Costs

Traditional costing is most useful when a major part of the product's unit cost is related to direct

labor, or the amount of money a company will pay for human labor to produce the product. When

there are more overhead costs that aren't related to human labor, such as the cost of machines

which lose value and capacity over time, traditional costing isn't the best way for the company to

understand production costs.

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Assign Costs to Production Units

Traditional costing enables the company to assign production costs to different areas of

production. This is beneficial because each area of production can be held accountable for its

productivity. A production facility that costs twice as much to produce a product as another

facility might be a target for elimination by management. Because it is economically rational to

keep production costs as low as possible, a company will relocate its facilities to where

production costs are lowest. That's why companies move operations overseas where cheaper labor

is available.

Benefits for Organizations

Traditional costing benefits certain types of organizations that need to study production costs as

fixed costs. For example, the organization would look at production costs in terms of product

level, batch level or facility level cost. The cost is fixed, and if the level of production changes,

the cost doesn't fluctuate. This concept applies to a public agency with little variability in its labor

costs (because employee labor costs are relatively steady).

2.2.3 Limitations of Existing Costing Method

However there are some points which can be doubt about the appropriateness of the current

method for the company…

Such as,

Accuracy of the pricing

Traditional costing helps ascertain the overall profitability or efficiency of the manufacturing

system but fails to provide the real cost of individual product units. For instance, there could be a

product such as, Gents undergarments, which would not need fuel & oil resource for the

production, however under the absorption costing method a part of these overheads also will be

included in the Gents undergarment production cost. This overvalues the cost as well as the price

of the product…

Strategic Decisions

In most cases by using the traditional method the management of the company will not be able to

make proper strategic decisions because the overheads for each and every output is same i.e.

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Rs62.45. So that the management is unaware about the consumption of the overheads by the each

product, thus, this limits the control of the production cost of the company. However, Activity

based costing mirrors the functioning of the enterprise and contributes to strategic decision-

making processes. ABC provides the real cost of individual product units and, thereby, helps

identify inefficient or non-profitable products that eat into the profitability of other highly

profitable products.

Cost Performance

If traditional cost performance is applied, industrial marketers would not be competitive with non-

manufacturing costs. This is because traditional cost performance assumes that an order is typical

of overall operations such that all activities are performed in proportion to the volume measure

with which variable costs varies.

Ability to Distort

For a business that manufactures a large volume of a few products, traditional costing could

provide a good idea of the costs of manufacturing a product. However, as the level of diversity in

output rises, traditional costing becomes less reliable. Firms that have a lot of overhead expenses

need a more reliable method to allocate the overhead costs to different products. If a business uses

incorrect costing to allocate costs, it could price its products incorrectly. This might affect its

competitive position.

Outdated

The manufacturing environment has changed in the decades since traditional costing methods

were developed. Machines and computers are used more often. Technological developments have

led to a decreased need for labor in manufacturing processes. This means that a system that uses

direct labor as a proxy for allocating different overheads is outdated. This has led to the

development of alternatives, such as activity-based costing.

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2.3.1 Implementing an alternative method

In this section we describe about an alternative method DG fashions can use instead of Traditional

Costing \method. We highly recommend activity based Costing (ABC) to gain a much more

accurate overhead cost per unit which leads to more reliable unit price.

2.3.2 Activity-Based Costing

ABC is a methodology that measures the cost and performance of activities, resources, and cost

objects to provide more accurate cost information for managerial decision making. ABC is not an

accounting exercise, but rather a methodology that produces a bill of activities that describes the

cost buildup for individual products, services, or customers. By recognizing the causal

relationships among resources, activities, and cost objects such as products or customers, ABC

allows one to identify inefficient or unnecessary activities and opportunities for cost reduction or

profit enhancement.

Comparison of traditional costing and ABC

The traditional method of costing relied on the arbitrary addition of a proportion of overhead costs

on to direct costs to attain a total product cost. The traditional approach to cost allocation relies on

three basic steps.

1. Accumulate costs within a production or non-production department.

2. Allocate non-production costs to production departments.

3. Allocate the resulting production department costs to various products, services or customers.

This type of costing system usually allocates costs based on a single volume measure, such as

direct labor hours or machine hours. While using such a simplistic volume measure to allocate

overheads as an overall cost driver, this approach seldom meets the cause-and-effect criteria

desired in accurate cost allocation.

This method of costing has become increasing inaccurate as the relative proportion of overhead

costs has risen. This distortion of costs can result in inappropriate decision making.

ABC is therefore an alternative approach to the traditional method or arbitrary allocation of

overheads to product, services and customers.

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Application

In contrast to traditional cost accounting systems, ABC systems first accumulate overheads for

each organizational activity. They then assign the costs of these activities to products, services or

customers (referred to as cost objects) causing that activity.

The initial activity analysis is clearly the most difficult aspect of ABC. Activity analysis is the

process of identifying appropriate output measures of activities and resources (cost drivers) and

their effects on the costs of making a product or providing a service.

ABC systems have the flexibility to provide special reports so that management can take

decisions about the costs of designing, selling and delivering a product or service. The key aspect

is that ABC focuses on accumulating costs via activities, whereas traditional cost allocation

focuses on accumulating costs within functional areas.

The main advantage of ABC is that it minimizes or avoids distortions on product costs that might

occur from arbitrary allocation of overhead costs

Figure 1. Framework of Activity Based costing

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Steps in development of an ABC System

ABC uses cost drivers to assign the costs of resources to activities and unit cost as a way of

measuring an output.

There are four steps to implementing ABC.

1. Identify activities

The organization needs to undertake an in-depth analysis of the operating processes of each

responsibility centre. Each process might consist of one or more activities required producing an

output.

2. Assign resource costs to activities

This involves tracing costs to cost objects to determine why the cost occurred. Costs can be

categorized in three ways:

i. Direct – costs that can be traced directly to one output. For example, the wood and paint

that it takes to make a chair.

ii. Indirect – costs that cannot be allocated to an individual output, that is, they benefit two or

more outputs, but not all outputs. For example, maintenance costs or storage costs.

iii. General/administration – costs that cannot be associated with any product or service.

These costs are likely to remain unchanged, whatever output is produced. For example,

salaries of administration staff, security costs or depreciation.

3. Identify outputs Identify all of the output for which an activity segment performs activities and

consumes resources. Outputs might be products, services or customers.

4. Assign activity costs to outputs

This is done using activity drivers. Activity drivers assign activity costs to outputs (cost objects)

based on the consumption or demand for activities.

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Reported benefits

• ABC provides a more accurate method of costing of products and services.

• It allows for a better and more comprehensive understanding of overheads and what

causes them to occur.

• It makes costly and non-value adding activities more visible, so allowing managers to

focus on these areas to reduce or eliminate them.

• It supports other management techniques such as continuous improvement, scorecards and

performance management.

Reported drawbacks

• ABC can be difficult and time consuming to collect the data about activities and cost

drivers.

• It can be costly to implement, run and manage an ABC system.

• Even in ABC some overhead costs are difficult to assign to products and customers. These

costs still have to be arbitrarily applied to products and customers.

2.3.2 Opportunities in implementing ABC method

• Assesses costs of individual activities, based on their use of resources

• Enables accurate costing of all activities to be obtained throughout an organization.

• Easy to identify where high (and low) costs are being incurred and the cause.

• A valuable tool for both business and process improvement

• Helps with future product planning e.g. the cost of all activities associated with a product

or service can be accurately determined before it is launched. This can then help with

determining pricing, and any associated expenditure

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2.3.3 Barriers in Implementing ABC method

Identifying and aggregating activities

Assigning resources to activities

Selecting cost drivers

Assigning activity costs to cost objects

Internal resistance

Top management support

Uncertainty of ABC benefits

Data collection difficulties

Suitable accounting staff, computer staff

Inadequate computer software

Amount of work and time needed

Human resource availability

Lack of knowledge experience

Lack of software availability.

The above list indicates that technical issues such as: defining activities, selecting cost drivers and

assigning resources and costs to activities are common difficulties encountered during the

implementation stage of ABC among the studies. Based upon an analysis of the above table, the

barriers to and difficulties of implementation of ABC systems may be classified into three distinct

strands, as illustrated in the following chart:

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Figure 2. Barriers and difficulties classification

Given the frequency with which technical issues have been identified as constituting

“difficulties”, it is perhaps surprising that so little empirical research has been devoted in this

area. An aspect of ABC implementation that researchers have neglected is the process of

designing the ABC model – i.e. the resources, activities and cost drivers that are the ‘economic

map’ of the organization.

Barriers and Difficulties to

ABC implementation

Technical Issues Behavioral Issues Systems Issues

- Identifying activities

- Aggregating activities

- Assigning resources to

Activities

- Selecting cost drivers

- Assigning activities

costs to cost objects

- Internal resistance

- Top management support

- Uncertainty of ABC benefits

- Human resource availability

- Lack of knowledge/

Experience

- Satisfied with current systems

- Data collection difficulties

- Inadequate computer

software

- Suitable accounting staff,

computer staff

- Amount of work & time

needed

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Conclusion

The choice of a system for calculating costs can have an important strategic implication. Using

the wrong product costing system can lead to business failure. Therefore, it is imperative that

companies should study and know whether ABC may be applicable to the current set up of their

business organization rather than continuously using standard costing system that they have been

using in the past. Once the appropriate costing system that best suit the business operation was

determined, e.g. ABC, it is important that accountants must understand the basics of the new

system that will be installed. The use of Activity-Based Costing technique will require a thorough

understanding of the people implementing and using it. Without the necessary training and

expertise, like all other techniques, its application will prove to fail.

Furthermore, the company needs more than just one allocation base to effectively allocate

production overheads to product. In this regard Activity-Based Cost (ABC) method is the best

recommendation if its adoption and application is financially convenient and practically feasible

for the company. Better still the company can adopt multiple bases in allocating its production

overhead cost if it cannot afford the use of ABC method. Finally, the company can reduce its

profit margin so as to enable the accounts department ensure full absorption of production

overheads whereas it continues to maintain its loyal customers when the firm is engaged in price

competition.

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References

1. http://digbig.com/4xtmc

2. www.offtech.com.au/abc/Home.asp

3. http://digbig.com/4xtmg

4. www.businessfinancemag.com

5. http://asbbs.org/files/2009/PDF/M/MyersJ.pdf

6. http://www.mccc.edu/~horowitk/documents/Chapter04_002.pdf

7. http://www.accountingcoach.com/blog/taditional-method-cost-accounting

8. www.newdgfashions.com/

9. www.slideshare.net/

10. http://books.google.lk/books/about/Management_Accounting.html?id=3Ki8osgX90oC&redir_esc

=y

11. Yair M. Babad & Bala V. Balachandran (1993); Cost Driver Optimization in Activity-Based

Costing, THE ACCOUNTING REVIEW;

12. R.L. Weil, and M.W. Maher, Handbook of Cost Management, New Jersey, John Wiley & Sons,

2005.

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Appendices