Activity-based costing (ABC

Main article: Activity-based costing
Activity-based costing was first clearly defined in 1987 by Robert S. Kaplan and W. Bruns as a
chapter in their book Accounting and Management: A Field Study Perspective. They initially
focused on the manufacturing industry, where increasing technology and productivity
improvements have reduced the relative proportion of the direct costs of labor and materials, but
have increased relative proportion of indirect costs. For example, increased automation has
reduced labor, which is a direct cost, but has increased depreciation, which is an indirect cost.

Grenzplankostenrechnung (GPK)
Main article: Grenzplankostenrechnung_(GPK)
Grenzplankostenrechnung is a German costing methodology, developed in the late 1940s and
1960s, designed to provide a consistent and accurate application of how managerial costs are
calculated and assigned to a product or service. The term Grenzplankostenrechnung, often
referred to as GPK, has best been translated as either marginal planned cost accounting[10] or
flexible analytic cost planning and accounting.[11]
The origins of GPK are credited to Hans Georg Plaut, an automotive engineer, and Wolfgang
Kilger, an academic, working towards the mutual goal of identifying and delivering a sustained
methodology designed to correct and enhance cost accounting information. GPK is published in
cost accounting textbooks, notably Flexible Plankostenrechnung und
Deckungsbeitragsrechnung[12] and taught at German-speaking universities.

Lean accounting (accounting for lean enterprise)
Main article: Lean accounting
In the mid- to late-1990s several books were written about accounting in the lean enterprise
(companies implementing elements of the Toyota Production System). The term lean accounting
was coined during that period. These books contest that traditional accounting methods are better
suited for mass production and do not support or measure good business practices in just-in-time
manufacturing and services. The movement reached a tipping point during the 2005 Lean
Accounting Summit in Dearborn, Michigan, United States. 320 individuals attended and
discussed the merits of a new approach to accounting in the lean enterprise. 520 individuals
attended the 2nd annual conference in 2006 and has varied between 250 and 600 attendees since
that time.

Resource consumption accounting (RCA)
Main article: Resource Consumption Accounting

Thus. It is a fundamental principle used in assigning value and revenue attribution to the various business units. the business units are able to produce segment financial results which are used by both internal and external users to evaluate performance. RCA emerged as a management accounting approach around 2000 and was subsequently developed at CAM-I the Consortium for Advanced Manufacturing–International. . Although the funds transfer pricing process is primarily applicable to the loans and deposits of the various banking units. Once transfer pricing is applied and any other management accounting entries or adjustments are posted to the ledger (which are usually memo accounts and are not included in the legal entity results). the bank's corporate treasury department will assign funding charges to the business units for their use of the bank's resources when they make loans to clients. transfer pricing is a concept used in manufacturing but is also applied in banking. principle-based. fully integrated.Resource consumption accounting (RCA) is formally defined as a dynamic. For any given product. The treasury department will also assign funding credit to business units who bring in deposits (resources) to the bank. The specific functions and principles followed can vary based on the industry. it is a tool to measure the contribution per unit of constrained resource. For example. Management accounting principles in banking are specialized but do have some common fundamental concepts used whether the industry is manufacturing-based or service-oriented. this proactive is applied to all assets and liabilities of the business segment. customer or supplier. Transfer pricing Main article: Transfer pricing Management accounting is an applied discipline used in various industries. in a Cost Management Section RCA interest group in December 2001. which recognizes the interdependencies of modern production processes. and comprehensive management accounting approach that provides managers with decision support information for enterprise optimization. Throughput accounting Main article: Throughput accounting The most significant recent direction in managerial accounting is throughput accounting. Essentially. transfer pricing in banking is the method of assigning the interest rate risk of the bank to the various funding sources and uses of the enterprise.