An integrated activity-based costing and economic value added system for small manufacturing companies.

摘要

Many small manufacturing companies get into financial trouble not because of bad products, but because they lack the appropriate financial and managerial tools necessary for controlling business and establishing strategic corporate goals. Traditional financial performance measures alone, such as sales, profit, gross profit, profit margin, growth in assets, and market share, do not always reliably assess a company's financial position or help to predict its future business results. Indeed, managers in small manufacturing companies often base their decisions on obsolete, incomplete, or unreliable cost information provided by traditional costing systems. It is hypothesized that an integrated costing and performance measurement system that combines Activity-Based Costing with Economic Value Added will give managers in small manufacturing companies more accurate and reliable financial data that will lead to improved decision making. This research investigates how to create and implement such a joint system and evaluates its potential impact on small manufacturers' decision-making process.