Manufacturing overhead cost driver analysis

Abstract This paper empirically examines hypothesis from the accounting, manufacturing, and strategy literatures about volume-based, complexity-based, and efficiency-based drivers of manufacturing overhead costs. Cross-sectional data from a questionnaire of thirty-seven facilities of an electronics company are examined. Subject to caveats regarding the cross-sectional tests, strongest empirical association is found for volume-related cost drivers. There is not consistently strong empirical association for complexity- or efficiency-related drivers. Explanations for the limited association for the complexity- and efficiency-related drivers include proxy problems with the complexity and efficiency concepts and problems in developing uniform measures of variables across a broad cross-section of facilities.

[1]  Robin Cooper,et al.  How Cost Accounting Systematically Distorts Product Costs , 1987 .

[2]  George Foster,et al.  Corporate Financial-Reporting - A Methodological Review Of Empirical-Research , 1982 .

[3]  Phillip S. Mitchell.  Japanese Manufacturing Techniques: Nine Hidden Lessons in Simplicity , 1983 .

[4]  R. Schonberger.  Japanese manufacturing techniques : nine hidden lessons simplicity , 1982 .

[5]  T. Cook,et al.  Quasi-experimentation: Design & analysis issues for field settings , 1979 .

[6]  Frederic M. Scherer,et al.  Innovation and Growth: Schumpeterian Perspectives , 1986 .

[7]  Madhav V. Rajan,et al.  Cost Accounting: A Managerial Emphasis , 1972 .

[8]  S. Wheelwright,et al.  Restoring Our Competitive Edge: Competing Through Manufacturing , 1984 .

[9]  Taro Yamane.  Statistics: An Introductory Analysis , 1965 .

[10]  G. Stalk,et al.  Kaisha: The Japanese Corporation. , 1986 .

[11]  David B. Humphrey,et al.  Scale Economies in Banking: A Restructuring and Reassessment , 1982 .

[12]  S. Sunder,et al.  Methodological issues in the use of financial ratios , 1979 .

[13]  Callie Berliner,et al.  Cost Management for Today's Advanced Manufacturing: The Cam-I Conceptual Design , 1988 .

[14]  K. Clark,et al.  Dynamic Manufacturing: Creating the Learning Organization , 1988 .

[15]  S. Siegel,et al.  Nonparametric Statistics for the Behavioral Sciences , 2022, The SAGE Encyclopedia of Research Design.

[16]  R. Yin.  Case Study Research: Design and Methods , 1984 .

[17]  Rajiv D. Banker,et al.  COSTS OF PRODUCT AND PROCESS COMPLEXITY , 1989 .

[18]  Richard Schonberger,et al.  World class manufacturing : the lessons of simplicity applied , 1986 .