Connecting Concepts of Business Strategy and Competitive Advantage to Activity-Based Machine Cost Allocations

Preventive remanufacturing planning of production equipment under operational and imperfect maintenance constraints: A hybrid genetic algorithm based approach

“…One possible alternative method, which seems consistent with the studied problem, is the activity-based depreciation approach (known also as the units of production method (UPM)) which makes it possible to estimate the depreciable amount of an asset according to its use. According to Palmer and Davis (2004), the time-of-use is the most popular single activity factor prescribed by proponents of activitybased costing (ABC) in machine-intensive environments. However, the units of time are not equal.…”

“…The reason is that both of the operating time and intensity (production rate) are different in each period. To deal with this situation, and based of the study of Palmer and Davis (2004), a new version of the activity-based depreciation approach is proposed; in this version, the production intensity factor is combined with the operating time in order to address the weaknesses of the depreciation allocation model that is based only on the operating time or production intensity.…”