A Causality Relationship of Increasing Efficiency in Inventory Management with ABC (Activity Based Costing) of Air Conditioning and Refrigeration Industry

Abstract

This article aims 1) to develop model a causality relationship of increasing efficiency in inventory management with ABC (Activity-based costing) of air conditioning and refrigeration industry and 2) to analyze a causality relationship of increasing efficiency in inventory management with ABC (Activity-based costing) of air conditioning and refrigeration industry. The data collected by questionnaires, testing with 203 samplings who executives, managers or production supervisors of air conditioning and refrigeration industry. The research sampling was accidental sampling. The reliability value was 0.875 of the questionnaires. The statistical analyzed data were percentage, mean, standard deviation and the confirmation component analysis.

The research showed that 1) the results of testing a causality relationship model was congruent with the empirical data which a according of hypothesis ( = 104.31, /df = 1.511, p-value = 0.083, GFI = 0.987, AGFI = 0.974, RMR = 0.036, RMSEA = 0.028 และ CFI = 0.975) and 2) the inventory management with ABC (Activity-based costing) was direct influenced coefficients of 0.48. Secondly, the inventory management factors were directly influenced at 0.37 and indirectly influenced at 0.03 coefficients to increasing operational efficiency. The inventory management with ABC (Activity-based costing) helps entrepreneurs understand actual costs and implement improve cost   management to reduce unnecessary costs affectively increased profits.