186 Int. J. Business and Systems Re

186 Int. J. Business and Systems Research, Vol. 4, No. 2, 2010
Copyright © 2010 Inderscience Enterprises Ltd.

Integrating activity-based costing and environmental
cost accounting systems: a case study
Wen-Hsien Tsai*
Department of Business Administration,
National Central University,
Jhongli, Taoyuan 320, Taiwan
E-mail: [e-mail]
*Corresponding author
Thomas W. Lin
Leventhal School of Accounting,
Marshall School of Business,
University of Southern California,
Los Angeles, CA 90089, USA
E-mail: [e-mail]
Wen-Chin Chou
Department of Accounting,
Yu Da University,
Chaochiao, Miaoli 361, Taiwan
E-mail: [e-mail]
Abstract: The integration of activity-based costing (ABC) and environmental
cost accounting (ECA) systems provides companies with more accurate
information to make both well-rounded and effective decisions. The purpose of
this study is to propose an effective approach to integrate both ABC and ECA
systems. A case study analysing process is used to compare the traditional
accounting system and the ABC system for allocating environmental costs. The
results enable managers not only to understand financial information regarding
the activities for environmental protection and the percentage of environmental
costs in the overall product costs but also to make more objective and accurate
decisions.
Keywords: ABC; activity-based costing system; ECA; environmental cost
accounting system; LCEC; life cycle environmental cost; green accounting.
Reference to this paper should be made as follows: Tsai, W-H., Lin, T.W. and
Chou, W-C. (2010) ‘Integrating activity-based costing and environmental cost
accounting systems: a case study’, Int. J. Business and Systems Research,
Vol. 4, No. 2, pp.186–208.
Biographical notes: Wen-Hsien Tsai is a Professor of Accounting and
Information Systems in the Department of Business Administration, National
Central University, Taiwan. He received his PhD in Industrial Management
from National Taiwan Science and Technology University. He is a certified
SAP Application Consultant on Accounting. His research interests include ERP
Integrating ABC and ECA systems 187
performance measurement, transportation management and management
accounting. He has published several papers in Int. J. Technology Management,
Transportation Science, Family Business Review, Industrial Marketing
Management, Omega-The International Journal of Management Science, Small
Business Economics, Int. J. Production Research, Computers and Operations
Research, Computers and Industrial Engineering, etc.
Thomas W. Lin is a Professor of Accounting in the Marshall School of
Business, University of Southern California, USA. He received his PhD in
Accounting from Ohio State University, MS in Accounting and Information
Systems from UCLA, and BA in Business Administration from National
Taiwan University. His research interests include management accounting and
management control systems. He has published papers in the Accounting
Review, Journal of Management Accounting Research, Journal of Information
Systems, Omega-The International Journal of Management Science, etc.
Wen-Chin Chou is an Assistant Professor in the Department of Accounting, Yu
Da University, Taiwan. She received her PhD in Business Administration from
National Central University, Taiwan. Her current research interests are
focussed on sustainable development, socially responsible investments and
multi-criteria decision making. She has published papers in Expert Systems
with Applications, Journal of the Operational Research Society, etc.
1 Introduction
Modern manufacturing companies are facing a globally competitive market. Estimating
product costs more accurately have become a strategic objective. The recent development
of the activity-based costing (ABC) system methodology has helped company managers
to estimate product costs more accurately. Moreover, green competitiveness will be a
critical factor to support companies’ sustainable development. With today’s situation in
mind, where a number of stakeholders have begun to focus on companies’ environmental
activities, a well performed environmental accounting could be a very valuable
management communication tool. More firms put increasing emphasis on environmental
cost accounting (ECA) system because the costs of complying with environmental
regulation (WEEE, RoHS and EuP) have increased. The impact of regulation on the cost
of production is expected to become an important determinant for the international
competitiveness of firms. In response to cost pressures, many companies have launched a
number of initiatives aimed at improving efficiency and reducing environmental impact;
as a result, integrated ABC and ECA system must be developed to achieve goals of
sustainable competitive advantage. How to integrate these two methods motivates this
study. Therefore, the purpose of this stu

Hasil (Bahasa Indonesia) 1:

186 int. J. bisnis dan penelitian sistem, Vol. 4, No. 2, 2010 Hak cipta © 2010 Inderscience Enterprises Ltd Mengintegrasikan berbasis aktivitas biaya dan lingkungan sistem akuntansi biaya: studi kasus Wen-Hsien Tsai *Departemen Administrasi Bisnis, Universitas Nasional Chung, Jhongli, Taoyuan 320, Taiwan E-mail: [e-mail] * Sesuai penulis Thomas W. Lin Leventhal sekolah akuntansi, Marshall sekolah bisnis, University of Southern California, Los Angeles, CA 90089, Amerika Serikat E-mail: [e-mail] Wen-Chin Chou Departemen akuntansi, Universitas Da Yu, Chaochiao, Miaoli 361, Taiwan E-mail: [e-mail] Abstrak: Integrasi berbasis aktivitas biaya (ABC) dan lingkungan sistem akuntansi biaya (ECA) menyediakan perusahaan dengan lebih akurat informasi untuk membuat keputusan bulat baik dan efektif. Tujuan studi ini adalah untuk mengajukan sebuah pendekatan efektif mengintegrasikan ABC dan ECA sistem. Studi kasus analisis proses digunakan untuk membandingkan tradisional sistem akuntansi dan sistem ABC untuk mengalokasikan biaya lingkungan. The hasil memungkinkan para manajer tidak hanya untuk memahami informasi keuangan mengenai kegiatan untuk perlindungan lingkungan dan persentase lingkungan biaya dalam keseluruhan biaya produk, tetapi juga untuk membuat lebih objektif dan akurat keputusan. Kata kunci: ABC; kegiatan berbasis biaya sistem; ECA; biaya lingkungan accounting system; LCEC; life cycle environmental cost; green accounting. Reference to this paper should be made as follows: Tsai, W-H., Lin, T.W. and Chou, W-C. (2010) ‘Integrating activity-based costing and environmental cost accounting systems: a case study’, Int. J. Business and Systems Research,Vol. 4, No. 2, pp.186–208. Biographical notes: Wen-Hsien Tsai is a Professor of Accounting and Information Systems in the Department of Business Administration, National Central University, Taiwan. He received his PhD in Industrial Management from National Taiwan Science and Technology University. He is a certified SAP Application Consultant on Accounting. His research interests include ERP Integrating ABC and ECA systems 187performance measurement, transportation management and management accounting. He has published several papers in Int. J. Technology Management,Transportation Science, Family Business Review, Industrial Marketing Management, Omega-The International Journal of Management Science, Small Business Economics, Int. J. Production Research, Computers and Operations Research, Computers and Industrial Engineering, etc. Thomas W. Lin is a Professor of Accounting in the Marshall School of Business, University of Southern California, USA. He received his PhD in Accounting from Ohio State University, MS in Accounting and Information Systems from UCLA, and BA in Business Administration from National Taiwan University. His research interests include management accounting and management control systems. He has published papers in the Accounting Review, Journal of Management Accounting Research, Journal of Information Systems, Omega-The International Journal of Management Science, etc. Wen-Chin Chou is an Assistant Professor in the Department of Accounting, Yu Da University, Taiwan. She received her PhD in Business Administration from National Central University, Taiwan. Her current research interests are focussed on sustainable development, socially responsible investments and multi-criteria decision making. She has published papers in Expert Systems with Applications, Journal of the Operational Research Society, etc. 1 Introduction Modern manufacturing companies are facing a globally competitive market. Estimating product costs more accurately have become a strategic objective. The recent development of the activity-based costing (ABC) system methodology has helped company managers to estimate product costs more accurately. Moreover, green competitiveness will be a critical factor to support companies’ sustainable development. With today’s situation in mind, where a number of stakeholders have begun to focus on companies’ environmental activities, a well performed environmental accounting could be a very valuable management communication tool. More firms put increasing emphasis on environmental cost accounting (ECA) system because the costs of complying with environmental
regulation (WEEE, RoHS and EuP) have increased. The impact of regulation on the cost
of production is expected to become an important determinant for the international
competitiveness of firms. In response to cost pressures, many companies have launched a
number of initiatives aimed at improving efficiency and reducing environmental impact;
as a result, integrated ABC and ECA system must be developed to achieve goals of
sustainable competitive advantage. How to integrate these two methods motivates this
study. Therefore, the purpose of this stu

Hasil (Bahasa Indonesia) 2:

186 Int. J. Bisnis dan Sistem Penelitian, Vol. 4, No. 2, 2010
Copyright © 2010 Inderscience Enterprises Ltd Mengintegrasikan costing dan lingkungan berdasarkan aktivitas akuntansi biaya sistem: studi kasus Wen-Hsien Tsai * Departemen Administrasi Bisnis, Universitas Pusat Nasional, Jhongli, Taoyuan 320, Taiwan E- mail: [e-mail] * Penulis Sesuai Thomas W. Lin Leventhal Sekolah Akuntansi, Marshall School of Business, University of Southern California, Los Angeles, CA 90089, USA E-mail: [e-mail]. edu Wen-Chin Chou Jurusan Akuntansi, Yu Da University, Chaochiao, Miaoli 361, Taiwan E-mail: [e-mail] Abstrak: Integrasi-kegiatan berbasis biaya (ABC) dan lingkungan (ECA) sistem akuntansi biaya menyediakan perusahaan dengan lebih akurat informasi untuk membuat kedua keputusan baik-bulat dan efektif. Tujuan dari penelitian ini adalah untuk mengusulkan suatu pendekatan yang efektif untuk mengintegrasikan kedua ABC dan ECA sistem. Proses analisis studi kasus digunakan untuk membandingkan tradisional sistem akuntansi dan sistem ABC untuk mengalokasikan biaya lingkungan. The Hasil memungkinkan manajer tidak hanya untuk memahami informasi keuangan mengenai kegiatan untuk perlindungan lingkungan dan persentase lingkungan biaya dalam biaya produk secara keseluruhan, tetapi juga untuk membuat lebih obyektif dan akurat keputusan. Kata kunci: ABC; sistem biaya berbasis aktivitas; ECA; biaya lingkungan sistem akuntansi; LCEC; siklus hidup biaya lingkungan; . akuntansi hijau Referensi kertas ini harus dilakukan sebagai berikut:. Tsai, WH, Lin, TW dan Chou, WC. (2010) 'Mengintegrasikan biaya berdasarkan aktivitas dan biaya lingkungan sistem akuntansi: studi kasus', Int. J. Bisnis dan Sistem Penelitian, Vol. . 4, No. 2, pp.186-208 catatan biografis: Wen-Hsien Tsai adalah Profesor Akuntansi dan Sistem Informasi di Departemen Administrasi Bisnis, National Central University, Taiwan. Ia menerima gelar PhD dalam Manajemen Industri dari National Taiwan Sains dan Teknologi Universitas. Dia adalah bersertifikat SAP Application Consultant di Akuntansi. Minat penelitiannya termasuk ERP Mengintegrasikan ABC dan ECA sistem 187 pengukuran kinerja, manajemen transportasi dan manajemen akuntansi. Dia telah menerbitkan beberapa makalah di Int. J. Manajemen Teknologi, Sains Transportasi, Keluarga Business Review, Industri Pemasaran Manajemen, Omega-The International Journal of Science Manajemen, Kecil Ekonomi Bisnis, Int. J. Produksi Penelitian, Komputer dan Operasi Riset, Komputer dan Teknik Industri, dll Thomas W. Lin adalah Profesor Akuntansi di Marshall School of Business, Universitas Southern California, USA. Ia menerima gelar PhD di bidang Akuntansi dari Ohio State University, MS dalam Akuntansi dan Informasi Sistem dari UCLA, dan BA di bidang Administrasi Bisnis dari National Taiwan University. Minat penelitiannya termasuk akuntansi manajemen dan sistem pengendalian manajemen. Dia telah menerbitkan makalah di Akuntansi Review, Jurnal Penelitian Akuntansi Manajemen, Jurnal Informasi Sistem, Omega-The International Journal of Science Manajemen, dll Wen-Chin Chou adalah Asisten Profesor di Departemen Akuntansi, Yu Da University, Taiwan . Dia menerima gelar PhD di bidang Administrasi Bisnis dari Universitas Pusat Nasional, Taiwan. Her kepentingan penelitian saat ini difokuskan pada pembangunan berkelanjutan, investasi bertanggung jawab sosial dan multi-kriteria pengambilan keputusan. Dia telah menerbitkan makalah di Sistem Pakar dengan Aplikasi, Journal of Society Riset Operasional, dll 1 Pendahuluan perusahaan manufaktur modern menghadapi pasar global yang kompetitif. Memperkirakan biaya produk yang lebih akurat telah menjadi tujuan strategis. Perkembangan terbaru dari kegiatan berbasis biaya (ABC) metodologi sistem telah membantu manajer perusahaan untuk memperkirakan biaya produk yang lebih akurat. Selain itu, daya saing hijau akan menjadi faktor penting untuk mendukung pembangunan berkelanjutan perusahaan '. Dengan situasi saat ini di pikiran, di mana sejumlah pemangku kepentingan mulai fokus pada lingkungan perusahaan 'kegiatan, akuntansi lingkungan dilakukan dengan baik bisa menjadi sangat berharga alat komunikasi manajemen. Perusahaan lebih menempatkan peningkatan penekanan pada lingkungan akuntansi biaya (ECA) sistem karena biaya sesuai dengan lingkungan regulasi (WEEE, RoHS dan EuP) telah meningkat. Dampak regulasi terhadap biaya produksi diperkirakan menjadi faktor penting untuk internasional saing perusahaan. Dalam menanggapi biaya tekanan, banyak perusahaan telah meluncurkan sejumlah inisiatif yang bertujuan untuk meningkatkan efisiensi dan mengurangi dampak lingkungan; sebagai akibatnya, ABC terintegrasi dan sistem ECA harus dikembangkan untuk mencapai tujuan dari keunggulan kompetitif yang berkelanjutan. Bagaimana mengintegrasikan kedua metode memotivasi ini studi. Oleh karena itu, tujuan dari stu ini