Fuzzy Activity Based Costing: A Methodology for Handling Uncertainty in activity based Costing systems

摘要

Activity based costing (ABC) systems are often developed using estimated input data. A methodology based on fuzzy set theory has been developed to handle estimation imprecision and uncertainty in ABC systems. This methodology creates a new type of ABC system; a fuzzy activity based costing (FABC) system. This paper introduces the Concepts behind FABC, discusses the FABC system development process, and presents a FABC system that was developed for a mid-sized pharmacetical company, Compared to ABC analysis, the developed FABC system provides additional and more valuable Decision making information to the company.