The following is a list of RCA Cases that has been published or is pending publication:
- Clinton, Doug and Webber, Sally. 2004. “RCA at Clopay,” Strategic Finance, October.
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The main purpose of the Clopay Plastic Products Company case study was to examine the changes in cost assignment (particularly fixed costs) and the ensuing benefits of implementing RCA principles in one factory of a larger manufacturing company. Resource consumption rates developed during the case study used German based GPK cost assignment logic, an integral component of RCA. Additional RCA principles include selective use of process-based drivers in cost-assignment, replacement cost depreciation, and theoretical capacity as the denominator in standard rate calculations. This article was written at a more conceptual level than the MAQ version and discusses key principles of RCA. Table 1 highlights important benefits of RCA over traditional cost management approaches along with a list of the specific benefits to Clopay that were demonstrated.
- Webber, Sally and Clinton, Doug. 2004. “Resource Consumption Accounting Applied: The Clopay Case,“ Management Accounting Quarterly, Fall.
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This is a more detailed description of the Clopay case for those who wish to take a deeper look at more of the numbers and expanded discussion. Issues, features, results, and key benefits are provided. Differences between standard costing and RCA are examined on a product-by-product basis, considering the three effects of (1) cost-assignment logic, (2) the capacity concept used, and (3) the depreciation concept employed. The article mentions that the largest effect on cost results was primarily due to the RCA cost assignment logic. The importance of capturing resource-level information is demonstrated by showing that product cost results can differ substantially with resource-level considerations. As this article explains, RCA makes it possible for decision makers to benefit from cost information that integrates the quantities in the underlying operational systems.
- Webber, Sally; Clinton, Doug; and van der Merwe, Anton. 2004. “Clopay and RCA—Resource Consumption Accounting,” A CAM-I Blue Book deliverable.
- MacKie, Brian. 2006. “Merging GPK and ABC on the Road to RCA,” (A Toronto Children’s Hospital Implementation), Strategic Finance. November.
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This article describes how a combination of GPK and process-based cost assignment was used to demonstrate benefits to Toronto Children’s Hospital. The discussion suggests that non-accounting operational managers were provided with significant benefits from a combination of GPK and ABC. Although the approach was limited by sourcing data from the general ledger (i.e., unlike RCA), the article demonstrates some benefits from the GPK approach of defining cost centers and identifying resource drivers, while restructuring financial records to be more understandable to operational managers. The end result was a GPK-inspired cost center structure, with an emphasis on ABC-related activities and drivers within an established GL structure. The study reports increased cost accuracy and manager’s understanding of capacity along with making data less aggregated and thus more useful to managers.
- The RCA Interest Group CAM-I. 2008. “The ONSemi case study, Applying RCA principles in the Hi-Tech industry,” Case results were incorporated into the CAM-I Blue Book deliverable.
- Goodhand, Melony and van der Merwe, Anton. “The University of Arkansas Medical Sciences Case Study: Applying RCA Principles in Higher Education,” Pending Publication.
- Clinton, Doug and van der Merwe, Anton. “The Caterpillar Case Study,” Pending Publication.