A manufacturing cost estimation method based on activity-based costing

Abstract

In order to estimate manufacture costs of the product more accurately, this paper will combine activity-based costing (Activity-based Costing, ABC) with BOM to estimate the product of direct manufacturing costs. As to the indirect cost estimates, this paper filter out the cost driver data in the process of direct cost estimation as input and predict output by neural network, so as to raise the accuracy of indirect costs estimates effectively. The results show that the proposed method is feasible.