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RCA, TDABC, and ERP Systems

Please help me define, explain and give examples of RCA and TDABC and how they are integrated into Enterprise Resource Planning (ERP) systems.

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Integration of RCA and TDABC into ERP System

Resource Consumption Accounting

Resource consumption accounting can be defined as the management accounting approach that supports the information in an organization for managers that helps enterprise optimization. It is a dynamic, principle based, fully integrated and comprehensive management accounting approach that is quite significant for the optimal utilization of resources in an organization and also facilitate the optimization in organization. It is relatively new and flexible accounting approach (Adkins, 2006). It is one of the most recently developed cost accounting methods to achieve the competency in the business. In other words, it can be explained as the detailed analysis of the nature and behavior of the resources. It is because; it produces the ways for better management of the limited resources through introducing different ways of measuring and managing the organizations' capacity. This accounting approach includes the different resources pool in which similar technologies, machinery and assets are grouped together. It is a quality based modeling system.

For example, the activity based resources planning approach uses the principles of Resource based accounting system. Under RCA approach the variable and fixed cost of the resources is treated separately that provides more significant ...

Solution Summary

This solution defines RCA and TDABC and how they are integrated into ERP systems.

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