Specifying conditions for cost systems generating relevant decision-making costs

• Type: Chapter or Part of a Book
• Date: 2012

Authors

Samuel Alves Pereira (Author) FEP; Falconer Mitchell (Author) Other

Book

Title: The Routledge Companion to Cost Management

Pages: 111-125

ISBN: 978-0-415-59247-5

Publisher: Routledge

Scientific classification

FOS: Social sciences > Economics and Business

Other information

Abstract (EN): The design of product cost systems has received considerable attention since the emergence of activity-based costing (ABC) in the late 1980s, as evidenced by the signifi cant number of articles published in professionally oriented journals and, to a lesser extent, in academic journals (Lukka and Granlund, 2002; Bjornenak and Mitchell, 2002). Compared to the professional world, the reception of ABC by academia has been much more cautious and critical (Bjornenak and Mitchell, 2002). One distinct academic contribution which the ABC innovation has initiated has been the use of mathematical analysis to specify the conditions under which a costing system can generate relevant costs for decision-making. Such a specifi cation provides the basis for assessing the validity of claims made for the advantages of activity-based and, indeed, other types of costing system.

Language: English

Type (Professor's evaluation): Scientific