Method of determining costs based on activities at some manufacturing enterprises of Viglacera Corporation - JSC

MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF COMMERCE

*****

LE THI HIEN

ACTIVITY BASED COSTING METHOD

AT SOME MANUFACTURING ENTERPRISES BELONGING TO VIGLACERA CORPORATION - JSC

DOCTORAL THESIS IN ECONOMICS

HANOI - 2022

MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF COMMERCE

*****

LE THI HIEN

ACTIVITY BASED COSTING METHOD

AT SOME MANUFACTURING ENTERPRISES BELONGING TO VIGLACERA CORPORATION - JSC

Major: Accounting Code: 9.34.03.01

DOCTORAL THESIS IN ECONOMICS

Scientific supervisor: 1. Associate Professor, Dr. PHAM THI THU THUY

2. Assoc.Prof.Dr. MAI NGOC ANH

HANOI - 2022

COMMITMENT

I hereby declare that this is my own research work. The data in the thesis are true. The results in the thesis have never been published in any other work.

Thesis author

Le Thi Hien

ACKNOWLEDGEMENTS

First of all, the author would like to express his deep gratitude and sincere appreciation to his supervisors: Associate Professor, Dr. Pham Thi Thu Thuy (University of Commerce) and Associate Professor, Dr. Mai Ngoc Anh (Academy of Finance). He would like to express his sincere thanks to the supervisors for their enthusiastic guidance, support and companionship throughout the process of writing and completing the thesis.

The author would like to thank the teachers and scientists inside and outside the University of Commerce for their comments on the thesis during the research process.

The author would like to express his gratitude for the support and facilitation of the Graduate School and the Faculty of Accounting, University of Commerce, so that the author could quickly complete the processes and procedures during the thesis implementation process.

The author would like to thank the administrators and accountants at some factories of Viglacera Corporation for helping the author during the interview process and collecting survey forms. In particular, the author would like to express his deep gratitude to the Board of Directors and the Accounting Department of Viglacera Aerated Concrete Joint Stock Company for helping the author a lot in understanding the actual production and business activities and collecting actual data at the Company.

Finally, the author would like to thank his parents, family, siblings, friends and colleagues at Foreign Trade University for their help, favorable conditions and encouragement throughout the research and completion of the thesis.

Thesis author

Le Thi Hien

INDEX

COMMITMENT i

ACKNOWLEDGEMENTS ii

TABLE OF CONTENTS iii

LIST OF ABBREVIATIONS vi

LIST OF TABLES vii

LIST OF DIAGRAMS viii

INTRODUCTION 1

CHAPTER 1: THEORETICAL BASIS OF THE METHOD OF DETERMINING COSTS BASED ON ACTIVITIES IN MANUFACTURING ENTERPRISES 17

1.1. Overview of costs and cost determination methods in manufacturing enterprises 17

1.1.1. Costs and cost classification 17

1.1.2. Methods of determining costs in manufacturing enterprises 23

1.2. Activity-Based Costing Method 29

1.2.1. Concept of activity-based costing method 29

1.2.2. Contents of the activity-based costing method 34

1.2.3. Comparison of activity-based costing and traditional costing 48

1.3. Experience in applying the activity-based costing method in some manufacturing enterprises in the world and lessons for Vietnamese manufacturing enterprises 51

1.3.1. Experience in applying the activity-based costing method in some manufacturing enterprises in the world 51

1.3.2. Lessons learned for Vietnamese manufacturing enterprises 60

CHAPTER 1 CONCLUSION 64

CHAPTER 2: RESEARCH METHODS AND RESEARCH PROCESS ... 65

2.1. Research method 65

2.1.1. Qualitative research methods 66

2.1.2. Quantitative research methods 67

2.2. Research process 78

CHAPTER 2 CONCLUSION 80

CHAPTER 3: SITUATION OF APPLICATION OF THE ACTIVITY-BASED COST DETERMINATION METHOD AT SOME MANUFACTURING ENTERPRISES BELONGING TO VIGLACERA CORPORATION-JSC 81

3.1. Overview of Viglacera Corporation and some manufacturing enterprises under Viglacera Corporation 81

3.1.1. General introduction to Viglacera Corporation and some manufacturing enterprises under Viglacera Corporation 81

3.1.2. Characteristics of accounting organization and applied accounting policies 92

3.2. Situation of applying cost determination method at some production facilities under Viglacera 94 Corporation

3.2.1. Characteristics of cost determination methods at some factories of Viglacera 94 Corporation

3.2.2. Method of determining costs at some factories of Viglacera Corporation .. 101

3.3. Research results on factors affecting the ability to apply the ABC method at some manufacturing enterprises of Viglacera Corporation 116

3.3.1 Descriptive statistics 117

3.3.2. Testing the suitability of the scale 118

3.3.3. Exploratory factor analysis 120

3.3.4. Regression analysis results 122

3.3.5. Analysis of influencing factors 126

3.4. Evaluation of the application of cost determination methods at some production facilities under Viglacera Corporation 129

3.4.1. Achievements 129

3.4.2. Limitations and causes 132

CHAPTER 3 CONCLUSION 136

CHAPTER 4: SOLUTIONS FOR APPLYING THE ACTIVITY-BASED COST DETERMINATION METHOD AT MANUFACTURING ENTERPRISES BELONGING TO VIGLACERA CORPORATION-JSC 137

4.1. Development orientation of Viglacera Corporation and some manufacturing enterprises under Viglacera Corporation 137

4.2. Principle requirements in applying the ABC method at some factories of Viglacera Corporation 139

4.3. Solution to apply ABC method at some factories of Viglacera Corporation 141

4.3.1. Solution on model applying ABC method 141

4.3.2. Solution on implementation process of ABC method 153

4.3.3. Solutions for the stages of applying the ABC method 155

4.4. Some recommendations to facilitate the implementation of solutions applying the ABC method at some production facilities under Viglacera Corporation 158

4.4.1. For Viglacera Corporation and some DNSX under Viglacera Corporation 158

4.4.2. For the State 162

CHAPTER 4 CONCLUSION 164

CONCLUSION 165

LIST OF AUTHOR'S RESEARCH WORKS RELATED TO THE THESIS TOPIC 167

LIST OF REFERENCES 168

LIST OF APPENDIXES 175

LIST OF ABBREVIATIONS

Financial Statements

Financial report
CPSX	Production cost
NLV	Raw materials
NC	Labor
Production	General production
Fixed assets	Fixed assets
DN	Business
DNSX	Manufacturing enterprise
Viglacera Corporation	Viglacera Corporation-JSC
ABC method	Activity-based costing Activity-Based Costing
ABM Method	Activity-based management Activity-based management
ABB method	Activity-based budgeting Activity-Based Budgeting Method
TDC method	Transactional costing Traditional costing methods
TDABC Model	Time-driven activity-based costing ABC model over time
EAD Matrix	Expense-Activity-Dependence matrix Cost-Activity Matrix
APD Matrix	Activity-Product-Dependence matrix Activity - Product Matrix

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