Professional Documents
Culture Documents
Accounting:
Resource Consumption
Accounting
Characteristics of Costs?
• Fixed or Proportional (Variable)
• Attributable to a Resource
• Original Characteristic Change as they are used
by an organization’s processes.
RCA: Resource Consumption Accounting
Confusion About the Nature of Cost
“Product costs are almost all variable
costs….variable costs of manufacturing and
marketing should provide a much better basis for
managerial decisions….” (Kaplan & Cooper, p. 27,
Management Accounting, April 1988).
FC
Volume
BE
*Kaplan, R. S. & Cooper, R. (1997). Cost and Effect, Harvard Business School Press: Boston, MA.
• RCA integrates
– Activity-based Costing and Throughput Resource Process view
Concepts view
Advantages
Advantages
Perform
Admin
P: Extrusion
S: Quality
Line Legend
Assurance
S-Support
QA
RP: QA Labor Testing P- Production
RP: Extrusion RP: Extrusion Machine1 (Labor hours)
Labor (Machine hours) Capacity: 14,000
(Labor hours) Capacity; 17,520 Output Qty: 14,000 Product
Capacity; 32,000 Output Qty: 10,000 Returns Department
Output Qty: 30,000
Manufacturing Costs
Resource Pool
Product Support Cost Abbreviated RP
Budgeted Products
Activity
$ 98,855 $ 700,000
Secondary Costs
$ 7,200 $ 28,000
RCA
GPK ABC
Capacity-Focused Activity-Focused
RCA: Resource Consumption Accounting
RCA: What’s Next?
• Bibliography of RCA Publications
• CAM-I.org, RCAInfo.com, www.IMAnet.org
• Resource Consumption Accounting Institute
– Training with a major university
– Certification for RCA Practice & Software
– Support for RCA Adopters
• Implementation Reviews
• Reviews of organizational practice & use