Purpose – The purpose with this study is to investigate which factors that needs to be considered for sourcing decisions to ensure an optimal long-term decision, and which of these factors that can be quantified in a product costing model. To fulfill this purpose two research questions have been proposed: Which factors needs to be considered for a sourcing decision? Which of these factors that needs to be considered can be quantified in a product costing model? Method – A case study was conducted to fulfill the purpose of this study. The case study produced empirical data through interviews and document studies. The empirical data was interpreted and analyzed on the basis of the theoretical framework, created through literature studies. This process produced the result of this study. Findings – Factors to be considered for a sourcing decision have been identified and categorized in four over-arching categories: unit cost, logistical factors, capability factors and risk factors. These factors have been quantified in a product costing model. A preparatory decision model was created to further integrate some risk factors that could not be quantified. Implications – Both the make or buy decision and the manufacturing location decision have been considered in the product costing model presented in this study. The product costing model visualize and take into account hidden costs, rarely considered in sourcing decisions. This further enables optimal long-term sourcing decisions. Limitations – Risk factors remain difficult to quantify. This makes it difficult to determine the cost of risk factors, and as a result of that, to include them in a product costing model. Companies with similar conditions suites the model since the case study was conducted at only one company. Whether the product costing model is true for business in other contexts remain uncertain. / Syfte – Syftet med denna studie är att undersöka vilka faktorer som bör beaktas vid ett försörjningsbeslut för att säkerställa ett långsiktigt korrekt beslut och vilka av dessa som kan kvantifieras i en kalkylmodell. För att uppfylla syftet har följande två frågeställningar formulerats: Vilka faktorer bör beaktas vid ett försörjningsbeslut? Vilka av dessa faktorer som bör beaktas kan kvantifieras i en kalkylmodell? Metod – För att uppfylla studiens syfte genomfördes en fallstudie. Med hjälp av intervjuer och dokumentstudier har fallstudien genererat empirisk data. Utifrån det teoretiska ramverket, som skapats genom litteraturstudier, har data tolkats och analyserats. Detta har gett upphov till studiens resultat. Resultat – Faktorer som bör beaktas vid ett försörjningsbeslut har identifierats och kategoriserats i fyra övergripande kategorier: enhetskostnad, logistikfaktorer, kapabilitetsfaktorer och riskfaktorer. Dessa faktorer har kvantifierats i en kalkylmodell. För vissa riskfaktorer som är svåra att kvantifiera har en förberedande beslutsmodell skapats. Implikationer – Kalkylmodellen som presenteras i denna studie beaktar både tillverka/köp-beslutet och lokaliseringsbeslutet. Kalkylmodellen tar hänsyn till dolda kostnader som sällan beaktas vid dessa typer av beslut. Detta möjliggör ett långsiktigt korrekt försörjningsbeslut. Begränsningar – Riskfaktorer är fortsatt svåra att kvantifiera och därmed kostnadsbestämma. Detta gör det svårt att inkludera dem i en kalkylmodel. Då fallstudien genomfördes på endast ett fallföretag är kalkylmodellen lämpad för företag med liknande förutsättningar. Det är därför svårt att säga hur väl kalkylmodellen stämmer för företag i andra kontexter.

<p>During the last decade, Activity-Based Costing (ABC) has been recognized as a means to obtain more accurate and relevant information of product cost. Consultants have tried using the ABC concept as leverage for new projects, representatives from companies have attended seminars, and articles have been written on the theoretical foundations, the empirical justification, and on the implementation process. However, little progress seems to have been made despite of these activities. The question, whether ABC is the solution to the “Relevance Lost” or not, still remains to be answered. The research is based on a case study of an Ericsson company that has introduced Activity-Based Costing model for product costing. The purpose is to provide a critical evaluation and analysis of the existing model and to discuss how to “regain the relevance” of product costing through ABC. The study is conducted by interviewing relevant persons who are responsible for costing model and production process at Ericsson Mobile Communications AB in Linköping (ECS). Relevant documents during the implementation of ABC model have also been examined. Despite of a logical ABC model within ECS, the accuracy of cost information has not been improved. Many factors have been forgotten. Keeping costing model update, relating managers’ responsibility to activities performed and taking the cost of unused capacity into account are several examples. The study shows that ABCis not and will not be, however, the solution to the aging traditional product costing unless one uses it properly.</p>

During the last decade, Activity-Based Costing (ABC) has been recognized as a means to obtain more accurate and relevant information of product cost. Consultants have tried using the ABC concept as leverage for new projects, representatives from companies have attended seminars, and articles have been written on the theoretical foundations, the empirical justification, and on the implementation process. However, little progress seems to have been made despite of these activities. The question, whether ABC is the solution to the “Relevance Lost” or not, still remains to be answered. The research is based on a case study of an Ericsson company that has introduced Activity-Based Costing model for product costing. The purpose is to provide a critical evaluation and analysis of the existing model and to discuss how to “regain the relevance” of product costing through ABC. The study is conducted by interviewing relevant persons who are responsible for costing model and production process at Ericsson Mobile Communications AB in Linköping (ECS). Relevant documents during the implementation of ABC model have also been examined. Despite of a logical ABC model within ECS, the accuracy of cost information has not been improved. Many factors have been forgotten. Keeping costing model update, relating managers’ responsibility to activities performed and taking the cost of unused capacity into account are several examples. The study shows that ABCis not and will not be, however, the solution to the aging traditional product costing unless one uses it properly.

Syfte Syftet med denna studie är att skapa en djupare förståelse för ekonomistyrning hos små och medelstora företag genom att undersöka hur och varför de arbetar med ekonomistyrningens formella styrmedel. Metod Studien har sin utgångspunkt i teori och använder en kvalitativ metod där data samlats genom semistrukturerade intervjuer med åtta olika företag. Vid val av informanter genomfördes ett strategiskt urval. En förklaring av studiens olika steg presenteras för att tydliggöra hur arbetet sett ut praktiskt. Slutsats Studien visar att formella styrmedel används inom SMF, men att utformningen av praktiska arbetet kan variera. Vad för typ av verksamhets som bedrivs har en stor inverkan på hur arbetet ser ut. Kontroll och uppföljning lyfts fram som huvudsakliga syften med styrningen. / Purpose The purpose of this study is to create a deeper understanding of management accounting in small and medium-sized enterprises by examining how and why they use the formal control systems of management accounting. Method The study has its base in theory and uses a qualitive method where data is collected through semi-structured interviews. A strategic selection was used when choosing the informants for the study. All steps are explained and presented to clarify how the study was conducted. Conclusion The study shows that formal control systems are used by SME, but how they are applied can variegate. The kind of business has a big impact on how the formal control systems are being used. Control and follow-up are presented as the main reasons for management accounting.

Syfte Syftet med studien är att bidra till en fördjupad förståelse för om och hur stora företag har förändrat sina formella styrmedel under covid-19 och på vilket sätt företagen har tagit lärdom om styrmedlen till tiden efter krisen. Metod Studien baseras på en kvalitativ metod där datainsamlingen skett genom semistrukturerade intervjuer med sju respondenter från tre olika företag. Valet av respondenter grundade sig i ett subjektivt och kriteriestyrt urval. Det praktiska arbetet presenteras genom transparenta och noggranna metodbeskrivningar. Slutsats Studien visar att inga större förändringar har skett i de formella styrmedlen till följd av covid-19. Resultatet påvisar att det har skett tillägg snarare än förändringar i de redan existerande processerna och rutinerna för att kunna bemöta den osäkra marknaden som covid-19 orsakat. Etablerade arbetssätt och stark position på marknaden lyfts som huvudsakliga förklaringar till resultatet. / Purpose The purpose of this study is to contribute to a deeper understanding of whether and how large companies have changed their formal control systems during covid-19 and in what way the companies have learned from the formal control systems till the time after the crisis. Method The study is based on a qualitative method where the datacollection took place through semi-structured interviews with seven respondents from three different companies. The respondents were based on a subjective and a criteria-driven selection. The practical work is presented through transparent and accurate method descriptions. Conclusion The study shows that no major changes has been done with the formal control systems because of covid-19. The result shows that there have been additions rather than changes to the already existing processes and routines in order to respond to the uncertain market caused by covid-19. Established working methods and strong position in the market are highlighted as the main explanations to the result.

Financail Accounting / D.Com. (Applied Accountancy)

Financail Accounting / D.Com. (Applied Accountancy)