A technical note on using work sampling to estimate the effort on activities under activity-based costing

摘要: Abstract Activity-based costing (ABC) assumes that activities consume resources and products activities. It uses the two-stage procedure to calculate product costs: it traces resource costs activities, then of products. In current practice for first-stage cost assignment, effort (labor) are traced by estimates expended on these often derived from information gathered interviews, questionnaires, time cards. However, is not objective achieve interviews or questionnaires. too time-consuming use cards acquire in some situations although most accurate method. The purpose this paper explain how work sampling estimate objectively spent under activity-based costing. results study also indicate percentages nonvalue-added which provide best opportunities continuous improvement.