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School of Business | Department of Accounting | Accounting | 2014
Thesis number: 13882
The concept and applicability of resource consumption accounting
Author: Pasanen, Valter
Title: The concept and applicability of resource consumption accounting
Year: 2014  Language: eng
Department: Department of Accounting
Academic subject: Accounting
Index terms: laskentatoimi; accounting; kustannuslaskenta; cost accounting; kannattavuus; profitability
Pages: 84
Key terms: RCA, Resource Consumption Accounting, cost accounting
This thesis establishes a clarification of the concept of Resource Consumption Accounting (RCA). From the theoretical summary conducted, the practical implications of the cost accounting system are established. The paper also seeks to derive in what ways RCA could enhance the decision making process of organizations. Additionally the benefits and main challenges of the RCA methodology are proposed, while also considering the challenges of RCA implementation. The study also aims to establish the main differences between RCA and the more popular cost accounting systems ABC and full-costing. The study will also conduct a qualitative case study in the field, in order to assess the cost accounting system in a practical environment. This method will support the theory specification and possible validation or refusal.

This study will conduct a formal concept analysis and field study on the concept and applicability of RCA., in order to capture how potential users perceive the attributes of this new cost accounting approach. Altogether five case companies were chosen for the field study and were presented with the previously unknown concept of RCA. The interviews were conducted during the fall and winter of 2013.

The results suggest that even though RCA is a detailed and theoretically valid cost accounting solution, it does in many perspectives not stand up to the promises expressed by its advocates. RCA represents a very short-term focused system that requires remarkable investments into operational modelling based on its principles. The case companies interviewed in the field study were not considering RCA as a viable solution for their cost accounting needs.
Master's theses are stored at Learning Centre in Otaniemi.