A framework for integrating activity-based costing and the balanced scorecard into the logistics strategy development

The Bottom Line

ISSN: 0888-045X

Article publication date: 1 June 1999

694

Keywords

Citation

(1999), "A framework for integrating activity-based costing and the balanced scorecard into the logistics strategy development", The Bottom Line, Vol. 12 No. 2. https://doi.org/10.1108/bl.1999.17012baf.011

Publisher

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Emerald Group Publishing Limited

Copyright © 1999, MCB UP Limited


A framework for integrating activity-based costing and the balanced scorecard into the logistics strategy development

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A framework for integrating activity-based costing and the balanced scorecard into the logistics strategy development

M.J. Liberatore and T. Miller in Journal of Business Logistics (USA), 1998 Vol. 19 No. 2: p. 131 (24 pages)

Shows how a company can use its activity-based costing (ABC) system and a balance scorecard in tandem, demonstrating the potential synergies of the two approaches through their joint contribution to a firm's distribution channel strategy. Gives an overview of ABC, highlighting the differences between actual and perceived channel profitability as per ABC compared with a traditional accounting system, and of the balanced scorecard's ability to facilitate the monitoring of a firm's progress towards its goals. Uses an analytical hierarchy process technique to propose an approach that enables formal, quantitative links between performance measures and goals, and specific strategies such as a firm's distribution channels strategy. Looks at the advantages offered by ABC in providing a more accurate analysis of true costs, and facilitating more accurate future projections of the profitability of alternative distribution channels.

Subject(s): Activity-based costing, Logistics, Decision making

Style: Theoretical with application in practice

Reference: 28AD176 (2 credits)

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