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INCREASING IMPORTANCE OF USING ACTIVITY BASED COSTING FOR DETERMINING MARKETING COSTS

Year 2005, Volume: 6 Issue: 24, 151 - 160, 10.06.2005
https://doi.org/10.14783/maruoneri.680788

Abstract

Today, in order to have competitive strength, fırms have to make better decisions about production technologies, product groups, pricing, advertising and distribution strategies. In order to make better decisions, they need correct cost information. Because of developing and chaııging production technologies, direct material and direct labor are no longer the most important production factors, instead, the percentage of manufacturing overhead costs in the total cost structure has increased. Traditional cost accounting systems are insuffıcient to provide accurate cost information and Activity Based Costing (ABC) is suggested by ntaıty academicians and accountants as a better cost accounting system. Additionally, high competition increased the marketing activities and consequently the marketing costs of the companies. In this study, first, ABC and marketing costs are examined, and then in order to have accurate cost information and to develop better strategies in every business area, the importance of using ABC for allocating marketing costs to cost objects is stressed.

References

  • [1] Cooper, R. & Kaplan, R.S. (1988). Measure Costs Right: Make the Right Decisions. Harvard Business Review, September-October, 96-103.
  • [2] Hanson, D.R. & Mowen, M.M. (1996). Cost Management. Ohio: South-Western College Pub.
  • [3] Selnes, F. (1992). Analysing Marketing Profıtability: Sales Are a Dangerous Cost driver. European Journal of Marketing, 2(26), 15-26.
  • [4] Foster, G. & Gupta, M. (1994). Marketing, Cost Management And Management Accounting. Journal of Management AccountingResearch, 6, Fail, 43-78.
  • [5] Lere, J.C. (2000). Activity-based costing: a powerful tool for pricing. Journal of Business & Industrial Marketing, 15(1), 23-33.
  • [6] Cokins, G. (1997). If Activity Based Costing Is The Answer. IJE Solutions 8, 29, 38-43.
  • [7] Stevenson, T.H. & Barnes, F.C. (1996). Activity-Based Costing: Beyond the Smoke and the Mirrors. Review of Business, 18, 25-32.
  • [8] Hicks, D.T. (1999). Yes, ABC is for Small Business, Too. Journal of Accountancy, 188(2), 41-44.
  • [9] Matteson, K.N. (1994). Introducing Activity-Based Costing to the Construction Industry. Journal of Construction Accounting and Taxation, Winter, 15-25.
  • [10] Cooper, R. (1994). Elements of Activity-Based Costing. Emerging Practices in Cost Management - Activity-Based Management. Boston: Warren, Gorham & Lamont Pub.
  • [11] Compton, T.R. (1996). Implementing Activity-Based Costing., CPA Journal, 66(3), 20-28.
  • [12] Brand, M.T., Levine, S.P. & Gourdoux, J.R. (1999). Application of Activity-Based Cost Management. Professional Safety, 44(1), 22-28.
  • [13] Gunasekaran, A., Marri, H.B. & Yusuf, Y.Y. (1999). Application of activity-based costing: some case experiences. Managerial Auditing Journal, 14(6), 286- 293.
  • [14] Cokins, G. (1999). Leaming To Love ABC. Journal of Accountancy, 188, 37-40.
  • [15] Chutchian-Ferranti, J. (1999). Activity-Based Costing, Financial and Business Concepts in Brief. Computerworld, 33(32), 54-55.
  • [16] Börjesson, S. (1994). What Kind of Activity-based information Does Your Purpose Require? Two Case Studies. International Journal of Operations & Production Management, 14(12), 79-99.
  • [17] Lentini, F. (1993). Accounting for Marketing Success. Journal of Accountancy, 3(175), 44-48
  • [18] Wilson, R.M.S., Gilligan, C. & Pearson, D. (1996). Strategic Marketing Management. Butterworth: Heinemann Pub. Co.
  • [19] Lewis, R.J. (1991). Activity-Based Costing For Marketing. Management Accounting, Nov., 33-38.
  • [20] Turney, P.B.B. (1990). Ten Myths About Implementing an Activity-Based Cost System. Journal of Cost Management, 4(1), 24-32.
Year 2005, Volume: 6 Issue: 24, 151 - 160, 10.06.2005
https://doi.org/10.14783/maruoneri.680788

Abstract

References

  • [1] Cooper, R. & Kaplan, R.S. (1988). Measure Costs Right: Make the Right Decisions. Harvard Business Review, September-October, 96-103.
  • [2] Hanson, D.R. & Mowen, M.M. (1996). Cost Management. Ohio: South-Western College Pub.
  • [3] Selnes, F. (1992). Analysing Marketing Profıtability: Sales Are a Dangerous Cost driver. European Journal of Marketing, 2(26), 15-26.
  • [4] Foster, G. & Gupta, M. (1994). Marketing, Cost Management And Management Accounting. Journal of Management AccountingResearch, 6, Fail, 43-78.
  • [5] Lere, J.C. (2000). Activity-based costing: a powerful tool for pricing. Journal of Business & Industrial Marketing, 15(1), 23-33.
  • [6] Cokins, G. (1997). If Activity Based Costing Is The Answer. IJE Solutions 8, 29, 38-43.
  • [7] Stevenson, T.H. & Barnes, F.C. (1996). Activity-Based Costing: Beyond the Smoke and the Mirrors. Review of Business, 18, 25-32.
  • [8] Hicks, D.T. (1999). Yes, ABC is for Small Business, Too. Journal of Accountancy, 188(2), 41-44.
  • [9] Matteson, K.N. (1994). Introducing Activity-Based Costing to the Construction Industry. Journal of Construction Accounting and Taxation, Winter, 15-25.
  • [10] Cooper, R. (1994). Elements of Activity-Based Costing. Emerging Practices in Cost Management - Activity-Based Management. Boston: Warren, Gorham & Lamont Pub.
  • [11] Compton, T.R. (1996). Implementing Activity-Based Costing., CPA Journal, 66(3), 20-28.
  • [12] Brand, M.T., Levine, S.P. & Gourdoux, J.R. (1999). Application of Activity-Based Cost Management. Professional Safety, 44(1), 22-28.
  • [13] Gunasekaran, A., Marri, H.B. & Yusuf, Y.Y. (1999). Application of activity-based costing: some case experiences. Managerial Auditing Journal, 14(6), 286- 293.
  • [14] Cokins, G. (1999). Leaming To Love ABC. Journal of Accountancy, 188, 37-40.
  • [15] Chutchian-Ferranti, J. (1999). Activity-Based Costing, Financial and Business Concepts in Brief. Computerworld, 33(32), 54-55.
  • [16] Börjesson, S. (1994). What Kind of Activity-based information Does Your Purpose Require? Two Case Studies. International Journal of Operations & Production Management, 14(12), 79-99.
  • [17] Lentini, F. (1993). Accounting for Marketing Success. Journal of Accountancy, 3(175), 44-48
  • [18] Wilson, R.M.S., Gilligan, C. & Pearson, D. (1996). Strategic Marketing Management. Butterworth: Heinemann Pub. Co.
  • [19] Lewis, R.J. (1991). Activity-Based Costing For Marketing. Management Accounting, Nov., 33-38.
  • [20] Turney, P.B.B. (1990). Ten Myths About Implementing an Activity-Based Cost System. Journal of Cost Management, 4(1), 24-32.
There are 20 citations in total.

Details

Primary Language English
Journal Section Eski Sayılar
Authors

Asuman Atik

Publication Date June 10, 2005
Published in Issue Year 2005 Volume: 6 Issue: 24

Cite

APA Atik, A. (2005). INCREASING IMPORTANCE OF USING ACTIVITY BASED COSTING FOR DETERMINING MARKETING COSTS. Öneri Dergisi, 6(24), 151-160. https://doi.org/10.14783/maruoneri.680788

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Öneri

Marmara UniversityInstitute of Social Sciences

Göztepe Kampüsü Enstitüler Binası Kat:5 34722  Kadıköy/İstanbul

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