Activity-based costing in smart and connected products production enterprises

The contribution of cyber-physical production systems to activity-based costing in manufacturing. An interventionist research approach

“…48 As a consequence, they can react to any lack in the manufacturing process, reducing its complexity. 39 Furthermore, the implementation of the proposed model in different contexts can help firms integrate manufacturing and marketing strategies. 49 Indeed, as the Cerved Report (2019) 50 shows, manufacturing SMEs are investing in manufacturing innovations and new technologies, including information technology, 51 to increase profitability.…”

“…On this basis, it can be hypothesised that investments in CPPS can facilitate the implementation and maintenance of the ABC method, 39 leading to several benefits from both a costing and a managerial perspective. The research questions this study aims to investigate are thus as follows: RQ1: Can investments in CPPS in engineer-to-order SMEs facilitate the implementation of the ABC method, increasing its usefulness? RQ2: Do technological (CPPS) and accounting (ABC) innovations support decision-making processes in engineer-to-order SMEs by providing timely and accurate information on production costs? …”

Probabilistic time‐driven activity‐based costing

“…Products transmit data to the manufacturer over lifetime and the manufacturer can then use the data to improve the product. The example is based on the case presented by Sánchez, Moral, and Ramoscelli (2019).…”

“…Information can be accessed in real-time on-site or off-site, and with a smartphone or with a desktop computer. The option that includes smartphone access requires internet connection (Sánchez et al, 2019). The scale platform project requires performing some tasks from product design and development (software, physical product, and communication component), platform installation, service and support, and data analytics.…”

“…Then, each resource is assigned a total cost for an interval of time. Exhibits are provided for illustrative purposes and are adapted from the example presented by Sánchez et al (2019). In this case, we consider 52 working weeks in a year, and working days sum up to 252.…”