Application of simulation technique to activity-based costing of agricultural systems: a case study

The aim of this paper is to analyse the operational costs of the Pu-Shin wholesale fish market in Taiwan, using both the activity-based costing (ABC) model and the simulation technique. By using simulation results in the calculated model of ABC, allocated resource costs are more accurate and arbitrary allocation is avoided. The objective of this study is to compute the processing cost per kilogram of fish. We conclude by providing relevant and accurate information about cost management of the Pu-Shin wholesale fish market, comparing ABC with traditional costing methods, and discussing key related issues which may provide opportunities for future research. We believe that the use of the ABC model in conjunction with simulation techniques can also be applied to agricultural systems in other countries.