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- Title
The Association Between Activity-Based Costing and Manufacturing Performance.
- Authors
Ittner, Christopher D.; Lanen, William N.; Larcker, David F.
- Abstract
This study examines the association between activity-based costing and manufacturing performance. Results using a cross-sectional sample of manufacturing plants indicates that extensive ABC use is associated with higher quality levels and greater improvements in cycle time and quality, and is indirectly associated with manufacturing cost reductions through quality and cycle time improvements. However, on average, extensive ABC use has no significant association with return on assets. Instead, we find weak evidence that the association between ABC and accounting profitability is contingent on the plant's operational characteristics.
- Subjects
ACTIVITY-based costing; MANUFACTURED products; PRODUCT costing; INDUSTRIAL costs; COST control; BREAK-even analysis; FINANCIAL performance; FACTORIES
- Publication
Journal of Accounting Research (Wiley-Blackwell), 2002, Vol 40, Issue 3, p711
- ISSN
0021-8456
- Publication type
Article
- DOI
10.1111/1475-679x.00068