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Enhancing production cost insights: integrating Cost Accounting and Regression Analysis

Stevenaar, R.A.G. (2025) Enhancing production cost insights: integrating Cost Accounting and Regression Analysis.

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Abstract:The study investigates how implementing a cost accounting method combined with regression analytics can enhance production cost insights for Company X, a global manufacturer of renewable energy plants. Frequently, production costs deviate from the estimated costs leading to budget overruns and financial discrepancies. This reveals the absence of a systematic approach to cost accounting and budget analysis. To address this problem, the Managerial Problem-Solving Method (MPSM) was employed. A literature review identified suitable cost accounting methods and regression techniques, leading to the adoption of activity-based costing (ABC) and a multiple linear regression analysis. The ABC method was used to allocate costs more precisely, while regression analysis identified key cost drivers and inefficiencies in cost estimation. Data from production logs and financial reports was analysed, and expert interviews were conducted to validate the models. The study confirmed that implementing a structured cost accounting method, combined with regression-based budget analysis, significantly improves cost transparency and financial control. Actionable recommendations are made to implement a refined cost accounting method and regression analytics to reduce financial discrepancies. Furthermore, a centralised database is recommended to support data-driven decision-making.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Programme:Industrial Engineering and Management BSc (56994)
Link to this item:https://purl.utwente.nl/essays/106052
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