The ABC‐LCA method for the integration of activity‐based costing and life cycle assessment

Jourdaine, Marc; Loubet, Philippe; Sonnemann, Guido; Trébucq, Stéphane

doi:10.1002/bse.2712

Cited by 11 publications

(5 citation statements)

References 49 publications

(67 reference statements)

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“…It is thus less suited for environmental analysis of BMs even though it can provide valuable insights for a company. A third method is activity-based costing LCA (ABC-LCA) (Jourdaine et al, 2021). It links LCA to economic parameters but is not a business-centred approach since its object of analysis is on the product and, consequently, focuses on product-related costs.…”

Section: Bm-lca Versus Other Life Cycle Methods In a Company Contextmentioning

confidence: 99%

Towards sustainable business models with a novel life cycle assessment method

et al. 2022

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Business model (BM) innovation for sustainability is hampered by a lack of tools for environmental assessment and guidance at the BM level. Conventional life cycle assessment (LCA) neglects the economic and socio-technical mechanisms within a BM, and tools based on the BM canvas (BMC) cannot provide recommendations substantiated by environmental data. Here, a new method, BM-LCA, is applied to a case comparing the selling and renting of jackets, using profit as basis of comparison.Results identify how business parameters influence environmental performance, permitting analysis for decoupling within a business practice. This is made possible by the unique way the method links physical life cycle and the monetary flows of a BM. Usefulness of BM-LCA is discussed relative to BM innovation, business strategy and similar tools. BM-LCA provides insights into a broad range of BM elements and emerges as useful for business strategy. By measuring BM environmental performance, it helps determine what BM to compete with and support critical analysis of business against greenwashing. BM-LCA also enables identification of BM elements in greatest need of environmental innovation. BM-LCA appears as a promising tool for guiding business companies towards sustainability, filling a space between LCA and BMC. The method offers a practical way for business and LCA experts to merge their respective knowledge.

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Section: Bm-lca Versus Other Life Cycle Methods In a Company Contextmentioning

confidence: 99%

Towards sustainable business models with a novel life cycle assessment method

et al. 2022

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“…In addition, it performs a comparison with fuel reduction strategies. A different approach is presented by Jourdaine et al (2021), which detailed the integration of life cycle assessment and ABC to develop a model to estimate financial costs and the associated environmental impacts of a production process in a simplified case study. Nonetheless, the mentioned article focused on quantifying environmental impacts only, in addition to costs to support decision-making by including environmental criteria.…”

Section: Literature Overview Of Time-driven Activity-based Costing Ap...mentioning

confidence: 99%

Integrating corporate social responsibility and quality management into the TDABC costing system: a case study in the assembly industry

Vedernikova

Morocho

Sigcha

et al. 2022

SRJ

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Purpose This paper aims to show the potential of time-driven activity-based costing (TDABC) to value and integrate corporate social responsibility (CSR) and quality management (QM) processes in the assembly industry. It provides valuable insights about operational processes, sub-process and activities within assembly companies by using TDABC’s time equations with more accurate costs for the decision-making process. Design/methodology/approach The current paper proposes a new methodology framework with four QM and CSR implementation levels and several costing scenarios through the TDABC system. The valuation was built based on the activities of essential referents in each subject, such as ISO, Ethos Institute and electrostatic discharge control programs. To this end, a case study in the assembly industry processes was conducted with data from a TV assembler. Findings The results highlight that TDABC can be extended to perform a cost analysis with QM and CSR processes. The environmental management and occupational safety and health administration processes were considered part of CSR to do so. Consequently, managers can simulate the cost and impact of incorporating CSR and QM in assembly processes and thus decide the implementation degree and its corresponding planning according to the needs and available resources. In this particular case, the company increases a maximum of 12% of its resources to be socially responsible and manage its products’ quality. Originality/value Although theoretical models on CSR have been developed, the current study provides a practical framework based on TDABC scenarios that enterprises can easily implement to support and evaluate QM and CSR processes.

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“…Estudios de calidad de vida y calidad ambiental son fundamentales como parte de la interacción entre el ser humano y el medio ambiente (Escobar-Mamani et al, 2020), y éstas vienen siendo administrados en parte por el método ABC dentro de un sistema de dirección, junto a los costos financieros y los impactos ambientales que requieren sean determinados sus costos reales y sus precios de servicios ambientales y pudieran ser más objetivos, teniendo en consideración que los impactos pueden asociarse con los costos para calcular de manera conjunta y simultánea los posibles impactos ambientales. Dado que, ellas trabajan desde un enfoque interdisciplinario para el cálculo de los costos indirectos mediante el sistema ABC, al tiempo que fueran útiles para el control y registro de los indicadores ambientales e inducir a mejorar la interacción entre la interacción entre el ser humano y el medio ambiente a partir del mejor control de sus costos de producción (Alrishani, 2020;Jourdaine et al, 2021).…”

Section: Calidad Y Medio Ambienteunclassified

Activity-based costing (ABC) in SMEs and innovative initiatives: possible option or expired?

Mamani

Argota-Pérez²,

Nina

et al. 2021

Rev. Investig. Altoandin.

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The quantification of production/service costs to determine the market price is fundamental in offering the maximum value of satisfaction. Therefore, management accounting is essential. One of the alternative tools is activity-based costing, known as ABC system, an alternative method to overcome the limitations of traditional indirect cost systems, which somehow distort the actual accounting of costs. Will exploring its development, applicability, challenges and benefits still be a possible option? This study aimed at reviewing the scientific literature produced on the activity-based costing system in recent years, identifying trends of adoption and challegnes of implementation in various manufacturing and service firms. High impact journals indexed in PubMed, Web of Science (WoS), Scopus, among others, were analyzed. The results show an increase of publications on the implementation of the ABC system in PubMed (855 publications), WoS (1131) and Scopus (2535). The results show that its applicability remains a possible option as an alternative costing tool for SME managers or owners. This study concludes that the application of the ABC system is adequate to determine real costs and could guarantee more reasonable and competitive prices in the market. However, there is still resistance to its implementation due to human and technological ignorance.

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The ABC‐LCA method for the integration of activity‐based costing and life cycle assessment

Cited by 11 publications

References 49 publications

Towards sustainable business models with a novel life cycle assessment method

Towards sustainable business models with a novel life cycle assessment method

Integrating corporate social responsibility and quality management into the TDABC costing system: a case study in the assembly industry

Activity-based costing (ABC) in SMEs and innovative initiatives: possible option or expired?

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