Activity-Based Costing: Accounting for a Market Orientation

Document Type

Article

Publication Date

11-1-1998

Department

Marketing and Fashion Merchandising

Abstract

Market- and customer-oriented activities represent a major resource investment for a firm. Activity-based costing (ABC) provides an enhanced means for marketers to assess the cost-versus-benefits of such activities. This article describes the usefulness of ABC to marketers at various levels of decision making: unit level, product level, channel level, and segment/customer level. Examples are provided to illustrate the potential for improved marketing decision making when ABC is utilized versus traditional accounting systems. (C) 1998 Elsevier Science Inc.

Publication Title

Industrial Marketing Management

Volume

27

Issue

6

First Page

497

Last Page

510

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