Integrating the activity-based costing system and life-cycle assessment into green decision-making

Carbon Emissions Cost Analysis with Activity-Based Costing

“…In recent years, there have been many studies to estimate the impact of CT on production through ABC [17,22,23]. However, there have been few articles that consider CRC in their decision model through ABC.…”

“…Equation (17) can be formulated as Equations (19)- (23) in the mathematical programming model. Equation (19) is the carbon emissions cost function of Model 2, and Equaitons (20)- (23) and Equations (4)- (15) are the constraints associated with the carbon emissions cost function of Model 2.…”

“…However, there are few studies that use the ABC approach in the footwear industry to resolve problems of cost and the environment. Therefore, this study utilized the ABC approach to accurately estimate the effect of CE.Moreover, previous researchers did not considered the possibility of purchasing carbon rights to get a larger CE allowance for production, but only considered carbon tax (CT) in their models when using the ABC approach to estimate CEC [17,[21][22][23]. For this reason, the models in this study discussed the effect of CE on profit through three kinds of situations.…”

Comparative Study: Activity Based Costing and Time Driven Activity Based Costing in Electronic Industry

“…ABC had been widely used due to its several advantages. It provided accurate, timely and reliable information to managers in order to make decisions [6], helped to determine the process cost of contemporary production processes [7], provided a more accurate product cost than TCA [8], helped to doing cost estimation during complex processes exist [9], achieved a proper cost estimation tool to set up budget of a complex project [10], allowed to estimate production costs and environmental cost accurately [11], helped to estimates the product/service costs by assigning the cost to the activities involved in the creation process [12], provided actual cost information to support management to do decision making [13], provided detailed and accurate cost information often required in taking various managerial decisions [14], provided detailed information for planning and controlling which lead to reduce unnecessarily costs [15], provided actual cost information that make management easy to provide decision making [16], helped to understand how to allocate resources and funding for activities to each system through appropriate cost drivers [17], helped for effectively computing values of cost drivers as well as making accurate cost estimations [18], helped managers understand how to allocate resources for activities through appropriate cost drivers [19], provided more detailed information on costs accurately calculate the manufacturing cost of our choice [20], helped to calculate an increasingly accurate manufacturing cost amidst the situation in which the share of indirect manufacturing cost increases due to the production technology advancement [9], helped to identify profitable and non-profitable products and account for resource constraints [21], determined the relative profitability of each market segment [22], helped to provide production plan and achieve the optimal profitable product mix [11] and improved all the company's inefficient activities [23].…”

Activity-Based Costing Using Multicriteria Drivers: An Accounting Proposal to Boost Companies Toward Sustainability

“…Since profits are the current main target for the company managers, economic drivers are considered when applying the ABC procedure, however, those drivers could be replaced by environmental-related ones to subsidize decisions for sustainability. Among others, efforts in this sense have being developed by Tsai et al (2010Tsai et al ( , 2012Tsai et al ( , 2015; Bagliani and Martini (2012), and Yang et al (2016) by integrating environmental cost-accounting and emissions inventory within the traditional ABC, however, none of these approaches recognize the quality of energy, the hierarchical energy scale, and the energy donor side perspective as emergy accounting does.…”