Activity-based Management Research Articles

The Proliferation of Artificial Intelligence in the Forklift Industry—An Analysis for the Case of Romania

This paper investigates the impact of artificial intelligence (AI) on the forklift industry, focusing on logistics and procurement within small and medium-sized enterprises (SMEs) in Romania. Using a mixed-methods approach, including interviews with seven managers from a benchmarked company in the forklift industry (BCFI) and quantitative analysis of operational data, we examine the transformative effects of AI integration. Key findings include a 30% reduction in inventory holding costs due to AI-powered predictive analytics; a 15% decrease in procurement costs through AI-driven supplier evaluation systems; a 25% increase in operational efficiency from AI-optimized route planning; a 40% boost in overall productivity attributed to AI-enabled automation; and a projected 20% reduction in low-skilled labor requirements over the next five years. The study employs environmental, social, and corporate governance (ESG), balanced scorecard (BSC), benchmarking, and activity-based management (ABM) models to analyze risks and implications of AI integration. A case study of a leading Romanian SME in the forklift industry is presented, examining financial strategies using McKinsey’s 7S framework. The paper concludes that while AI offers significant operational benefits, it also presents challenges in workforce transition and ethical considerations that require careful management.

Implementation Of The Activity Based Management Method For Cost Efficiency After The Covid 19 Pamdemi At CV. Natural Palembang

This study aims to calculate the cost efficiency of carpet production from abaca fiber using the Activity Based Management method and whether the Activity Based Management method used can reduce non-value added costs. This study used qualitative analysis techniques. The types of data used were primary and secondary data. From the analysis conducted at CV Natural Palembang, there were 7 activities which were value-added activities. Weighing, placing the ataka banana fiber in the place where the abaca fiber is separated, removing the colored abaca fiber on the clothesline, selecting the size of the carpet that has been made, checking the quality of the finished goods, sending and storing the finished goods to the warehouse. cost efficiency of 12.2%, CV Natural Palembang has not implemented the demity Based Management (ABM) method in the production process and calculating the costs of its production activities. Companies should apply the Activity Based Management (ABM) method in the production process and calculate the cost of production activities.

Determinants and impact of production planning and control accounting techniques on competitiveness of manufacturing companies: a structural equation modelling approach

PurposeThis study aims to investigate four internal (organisational structure, quality of information technology, business strategy and market orientation) and two external (competition intensity and perceived environmental uncertainty) contextual factors affecting the use of production planning and control accounting techniques (PPC), as well as the impact of PPC usage on organisational competitiveness.Design/methodology/approachSeven major PPC techniques were investigated, namely: attribute costing, lifecycle costing, quality costing, target costing, value-chain costing, activity-based costing and activity-based management. By deploying a multi-informant strategy, a structured questionnaire was used to gather survey data from 129 senior accounting, finance and production personnel of publicly quoted manufacturing companies in Nigeria.FindingsThe results, using structural equation modelling, show that market orientation is the strongest determinant of PPC usage. The inability of competition intensity and perceived environmental uncertainty to notably affect PPC usage suggests that external environmental pressure to use PPC is weak. Although PPC can engender organisational competitiveness, their interactive usage yields optimal results.Originality/valueThe study contributes to knowledge by: (i) presenting evidence that although PPC techniques can engender organisational competitiveness, it is their interactive usage that yields optimal results; (ii) empirically demonstrating that contextual factors influence PPC usage in line with the contingency theory; and (iii) validating the diffusion of innovation theory that organisations will typically deploy PPC techniques because of their relative advantage of improving organisational competitiveness.

Debt Maturity Structure and Earning Management: Evidence from Emerging Markets

This study aims to examine the non-linear impact of debt maturity structure on earnings management (EM) in international data settings. Panel dataset of 5129 non-financial listed firms from 9 Asian Emerging Economies (AEE) is analyzed covering the period from 2000 to 2021. EM is measured using Accrual-Based Earnings Management (AEM) and Real Activity-Based Earnings Management (REM). Debt is categorized into Total Financial Debt (TFD), Short-Term Debt (STD), and Long-Term Debt (LTD). Based on fixed effect regression model, results clearly reveal presence of non-linear relationship between debt maturities and EM. The study provides the evidence that firms of AEEs are engaged in accrual as well as real earnings management to report their earnings.TFD and STD have positive where as LTD has negative impact on AEM at low debt level. In the similar vein, TFD and STD have negative where as LTD has no impact on REM. The findings also demonstrate substitution of REM for AEM at varying debt levels. This study offer valuable insight for investors, creditors, policy makers, auditors and researchers.

Effectiveness of a Clinical Pathway for Breast Cancer Patients Undergoing Surgical Operation on Clinical Outcomes and Costs

Purpose: This study aimed to evaluate the impact of implementing a clinical pathways (CPs) on the clinical outcomes and costs of patients undergoing breast cancer surgery.Methods: This retrospective cohort study included patients who were newly diagnosed with primary breast cancer at the Samsung Medical Center between 2014 and 2019 (N=8482; 2931 patients in the pre-path and 5551 patients in the postpath). Clinical outcomes included reoperation during hospitalization, readmission, and emergency room visits within 30 days of discharge. The cost data for each unit were obtained from an activity-based management accounting system. We performed an interrupted time series analysis.Results: The post-path period showed a significantly shorter hospital length of stay (LOS) than the pre-path period (6.3 days in pre-path vs. 5.0 days in post-path; -1.3 days’ difference; p=.001), and fewer reoperations during hospitalization and within 30 days after discharge than the pre-path period. After adjusting for inflation rates and relative value scores, the model demonstrated savings of $146 per patient in the post-path for total costs, and $537 per patient for patient out-of-pocket costs (p=.001).Conclusion: CPs can help reduce costs without compromising the quality of care by reducing the number of reoperations, readmissions, and complications.

UTILIZATION OF THE ACTIVITIY BASED COSTING (ABC) SYSTEM IN DETERMINING OVERCOSTING OR UNDERCOSTING TUITION FEES

This study aims to identify the application of the Activity Based Costing (ABC) system in Private Universities in determining the cost of goods for the study program. The main focus of this study is to identify the activities of primary and secondary study programs to determine cost drivers and determine the rates of each of these activities. The research method through case studies by conducting quantitative descriptive analysis is collecting data, compiling data, classifying data and deciphering data. The source of the data came from interviews and observation of financial statement documents with samples at XYZ University. The calculation results obtained the conclusion that several social and economic study programs at XYZ University were in over costing and some exact study programs were under costing conditions. The implications of the results of this study provide input for XYZ University in developing an Activity Based Management (ABM) system as a process of continuous improvement in improving the quality of education.

Activity-based Management and incentive contracts in commerce - A case study

Activity-based Management and incentive contracts in commerce - A case study

The Earnings Management Strategy of Indebted Non-Listed Firms: The Case of Italy

Design/methodology/approach: For a sample of Italian non-listed firms that file full financial statements, we conduct a cross sectional regression analysis to determine whether the managers of indebted firms complement real activity-based (REM) with accrual-based (AEM) earnings management. To model each technique, we estimate OLS regressions with robust standard errors to avoid heteroscedasticity problems.Purpose: This research analyses whether the managers of highly indebted Italian non-listed firms, financed mainly by bank-loans, are likely to undertake real activity-based earnings management (REM) and accrual-based earnings management (AEM) as complementary activities to boost the impact of earnings management (EM) on reported earnings and achieve desired earnings targets.Findings: Consistent with the extant literature, we find that indebted firms are likely to complement REM with AEM to enhance their creditworthiness. We also provide evidence that high-quality audit companies constrain neither REM nor AEM initiatives. Finally, firms suffering from financial problems are less likely to engage in either initiative as they are under greater scrutiny from lenders.Originality: The paper investigates the complementary use of accrual-based and real activity-based earnings management techniques in non-listed firms, suffering from a high pressure from lenders in the case of indebtedness.Practical implications: This research should be of interest to banks, managers, and standard setters as it highlights the earnings management strategy employed by firms with a high leverage ratio and provides evidence on the relative costs associated with each earnings management technique.

A Deep Survey on Human Activity Recognition Using Mobile and Wearable Sensors

Activity-based wellness management is thought to be a powerful application for mobile health. It is possible to provide context-aware wellness services and track human activity thanks to accessing for multiple devices as well as gadgets that we use every day. Generally in smart gadgets like phones, watches, rings etc., the embedded sensors having a wealth data that can be incorporated to person task tracking identification. In a real-world setting, all researchers shown effective boosting algorithms can extract information in person task identification. Identifying basic person tasks such as talk, walk, sit along sleep. Our findings demonstrate that boosting classifiers perform better than conventional machine learning classifiers. Moreover, the feature engineering for differentiating an activity detection capability for smart phones and smart watches. For the purpose of improving the classification of fundamental human activities, upcoming mechanisms give the guidelines for identification for various sensors and wearable devices.

Influential independent directors' reputation incentives: Impacts on CEO compensation contracts and financial reporting

We study how reputation incentives of influential independent directors (those holding multiple directorships) affect CEO compensation and firm financial reporting decisions. We find that CEO equity-based incentives, measured by CEO delta, vega and the number of equity grants are positively related to these directors' reputation incentives. These director reputation incentives also mitigate the perverse CEO incentives to inflate earnings, which arise from such high-powered compensation structures, by motivating increased board monitoring to limit discretionary accruals and real activity-based earnings management. These findings are invariant to endogeneity adjustments under multiple approaches, including exogenous changes in reputation incentives.

ESTABLISHMENT OF ACTIVITY BASED MANAGEMENT ACCOUNTING FOR STRATEGIC PRICING IN A TRADING COMPANY IN THE FURNITURE INDUSTRY

Today, businesses need the right tools to use scarce resources more efficiently. As well as allocating resources in an efficient way, companies must develop and support ideal management approaches with these tools. The application of activity-based management accounting for strategic pricing in companies includes a shift from traditional cost accounting methods to a more comprehensive approach relating costs to activities and ultimately to pricing decisions. Activity-based management accounting provides a better understanding of cost behavior by identifying and analyzing the activities which are involved in producing and delivering products or services. In this regard, the purpose of this study is to develop an activity-based management model for strategic pricing in a trading company in the furniture industry. The developed model is significant since it details the stages of realization, considers strategic price variables and fixed costs of resource production one by one. To establish activity-based management accounting, all activities involved in the companys operations must be defined, classified, and cost assigned to each activity, which will enable the company to identify the cost factors for each activity and how these affect the overall cost of production. Companies can also analyze the profitability of their products or services using activity-based management accounting to determine which activities contribute to profit and which do not. KEY WORDS: Strategic Pricing, Activity-based costing, Activity-based management

Managing Costs for Efficiency in Production

Purpose: This study aims to provide cost information for the benefit of costs as a measure of the efficiency of a business. Planning tool, meaning that business planning is definitely related to income and costs. Cost control, meaning comparing the costs that should have been incurred to produce one unit of product with the actual costs incurred. Cost is an important factor in ensuring a company's victory in competition in the market. Consumers will choose producers who are able to produce high quality products and services at low prices. Contemporary Cost Management Systems emphasize tracking over allocation. And activity-based management is at the heart of contemporary operations control systems.
 Design/methodology/approach: This study used a descriptive research method. Data is the document obtained financial statement for the period of 2022. As for the subjects in this study are companies engaged in manufacturing, by calculating the cost based on the financial statements in 2022. 
 Findings: Based on the results of research, it can be concluded that recording costs in the company's internal or known as cost accounting is useful to assist company management in preparing plans or making decisions related to finance. There are at least two main factors that must be considered in choosing a cost driver, namely: measurement costs and the degree of correlation between the cost driver and actual overhead consumption. Cost drivers are divided into two categories, namely structural cost drivers and executional cost drivers. The cost driver is the basis used to charge the costs accumulated in the cost pool to products. So that by calculating costs through a Time Driven activity-based costing system, companies obtain more precise and accurate information.
 Research limitations/implications: The limitation in this study is that calculating cost can only be done for one entity.
 Practical implications: The results of this study can be used as a comparison in this cost has a function to measure production costs with the cost of production results. Activity based accounting will make it easier for accountants to understand the costs and benefits derived from the products the company produces.
 Originality/value: The focus of the research is to find ways to calculate the effectiveness of human resources, means of production, as well as the raw materials for the products to be used. This type of cost accounting also calculates the average direct cost required by the company during its production process.
 Paper type: Research paper.

Mungkinkah untuk menerapkan Activity Based Costing/Management pada Organisasi Pemerintah? Sebuah Tinjauan Pustaka

As one of the management tools in private sector organizations, Activity Based Costing/Management (ABC/M) provides information and knowledge to make decisions. This study aims to propose an idea of the possibility of implementing ABC/M in government organizations. The research was conducted using a Systematic Literature Review approach. The author collects various articles from reputable journals and proceedings using the Google Scholar database. The selection of articles was adjusted to predetermined inclusion and exclusion criteria. A total of 30 selected articles were analyzed and synthesized. The findings show that the ABC/M system is very likely to be applied to government sector organizations. Reflecting on the successful implementation of the ABC/M method in the public sector, the authors found that the implementation process was not easy. This is supported by the findings of various challenges and obstacles faced by public sector organizations. This research contributes to convincing policy makers that the ABC/M method can be implemented and theoretically contributes to enriching the ABC/M theoretical literature in the public sector, especially in the government sector.
 Keywords : Activity-Based Costing (ABC); Activity-Based Management (ABM); Government Organizations

The Covid-19 outbreak, corporate financial distress and earnings management

This study explores the association between the Covid-19 outbreak, corporate financial distress and earnings management practices in China. We investigate whether firms took advantage of the downturn in economic conditions during the pandemic to adjust their earnings using different earnings management techniques. Utilising a sample of 1832 listed firms and underlying theoretical frameworks (i.e., positive accounting and signalling theory), we find that firms were more inclined to manage earnings during the pandemic period. They favoured using the accrual-based rather than the real activity-based earnings management technique. We also find that firms engaged more in income-increasing practices in the shadow of the outbreak. In addition, our results further demonstrate that financially distressed firms were involved in earnings management, particularly accrual-based earnings management. However, compared to privately-owned firms, state-owned enterprises seem to be involved less in earnings management during the Covid-19 pandemic. Findings from this study raise some concerns for policymakers about the credibility of financial reporting information during Covid-19.

Developing a Strategic Cost Management Model for a Potato Packing Facility

Purpose: The purpose of the study was to solve a real-life business problem by developing a new customised strategic cost management (SCM) model for the case study entity － a South African potato packing facility. Design/method/approach: The study followed a pragmatic philosophy where data were collected by observation and semi-structured interviews. The data focused on the following SCM techniques: Business process re-engineering, activity-based management, Kaizen costing, total quality management, and target costing. Findings: The investigation found that, except for target costing, all the SCM techniques belong in a SCM model. The investigation also revealed specific practical operational examples which were firstly analysed according to codes, and secondly aggregated, rewritten, and inductively reasoned in order to illustrate these processes in a new customised SCM model. Practical implications: After the operational processes were documented, a new customised SCM model was developed for the case study entity. The findings of the study could be helpful when other organisations manufacture, process, or pack various products to make informed management decisions. Originality/value: The value of the study lies in the likelihood to establish transferability － the process that was followed to develop a new customised SCM model could be replicated.

Cost Control Recommendation Based on Activity-Based Management: A Case Study from Decreasing Opportunity Cost of National Health Insurance

Cost Control Recommendation Based on Activity-Based Management: A Case Study from Decreasing Opportunity Cost of National Health Insurance

ANALISIS PENERAPAN METODE ACTIVITY BASED MANAGEMENT UNTUK MENINGKATKAN EFISIENSI BIAYA PRODUKSI PADA PT. PESONA ARNOS BETON GRESIK

In the industry competition and technological advances increasing, companies can increase their competitive advantage to manage operational costs well. The costs issued by the company must have value added for the company so that there is no waste of costs. Therefore, cost efficiency is very crucial for a company in order to maintain its sustainability of the company. Activity-based management is a technique for increasing efficiency. This research aims to implement activity-based management to increase the efficiency of PT. The Charm of Arnos Concrete Gresik. This research is descriptive and qualitative, using primary data from interviews. Research that is descriptive qualitative using primary data in the form of interviews. Research findings show that by implementing activity-based management in PT Pesona Arnos Beton Gresik, activities with a low amount of added value are obtained after being carried out by this method. Costs that do not have added value can be reduced so that there are cost savings. This still develops efficiency without negating the quality of service provided to consumers or customers.

Top Management Characteristics and Earnings Management Strategies: Evidence from Indonesia

This study examines whether the strategic choice of earnings management chosen by top management (such as CEO and CEO and a team separately) is related to characteristics of top management (i.e., genders, age, tenure, financial expertise, business experience, and education). This study employs regression analyses to analyse 707 firm-year observations of manufacturing companies listed in the Indonesian Stock Exchange (IDX) between 2010 and 2018. This study found that top management team tended to choose the strategic choice of real-based earnings management. Meanwhile, top management individually, both CEO and CFO tend to choose accrual earnings management strategies over real activity-based earnings management. These results are inline with upper echelon theory and financial reportpreparation and mechanism in companies, especially in selecting and appointing top-level executive.

The availability of the elements for applying the activity-based budgeting system (ABB) in the banking sector in order to implement the activity-based management system (ABM) and activity-based budgeting (ABBC)

The availability of the elements for applying the activity-based budgeting system (ABB) in the banking sector in order to implement the activity-based management system (ABM) and activity-based budgeting (ABBC)

The availability of the elements for applying the activity-based budgeting system (ABB) in the banking sector in order to implement the activity-based management system (ABM) and activity-based budgeting (ABBC)

The research aimed to verify the application of the activity-based budgeting system (ABB) in the field of the commercial banking sector because of its great impact on the national economy of Iraq on the one hand, as well as its clear impact on customers and the level of service provision in the banking sector on the other hand. Activity-based budgets (ABB) in banks will facilitate the application of the activity-based management system (ABM) and the activity-based budgeting (ABBC), and the research problem focused on determining the availability of the elements of applying the activity-based budgeting system in order to improve the quality of performance in the field The banking sector, and in order to find solutions to this problem and to achieve the objectives of the research, a questionnaire was designed and distributed to the research sample consisting of (45) employees of a group of commercial banks in Baghdad to conduct statistical analysis using the descriptive statistics tools represented by the arithmetic mean to determine the extent of agreement of the selected sample with Questionnaire questions, and the standard deviation was used to estimate the absolute dispersion of the answers of the sample members from the mean to estimate the relative dispersion, and a picture was drawn for the preferences of the respondents and their general attitudes regarding the variable The results of the research, through the five-point Likert scale, which is an ordinal scale, to conduct statistical analysis according to the (SPSS) program, where it was concluded that the integration between the directions of senior management and the requirements of the application of the ABB system significantly affects the direction of the decision-making process, as well as The research concluded with a set of conclusions, the most important of which is that all the ingredients needed to implement the activity-based budgeting system are actually present in practice, but there are some obstacles that prevent this application, the most important of which are the high costs of application and the practical and technical difficulties related to the analysis of activities and costs. Research adopting the implementation of the activity-based budgeting system in order to improve the quality of performance in the banking sector, as it provides more accurate information that raises the level of planning, control and decision-making.