Premium
Supercharging Your ABC: Use Revenue Data!
Author(s) -
Brewer Peter C.,
Campbell Robert J.,
McClure Richard H.
Publication year - 2002
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.10050
Subject(s) - revenue , activity based costing , focus (optics) , income statement , business , statement (logic) , operations research , operations management , accounting , marketing , economics , engineering , political science , physics , balance sheet , law , optics
As in most managerial decision making, activity‐based costing (ABC) requires that managersfirst determine what information is relevant. Historically, the focus of ABC systems has been almost entirely oncosts, yet revenue‐oriented information is often highly relevant and useful. Incorporating both the revenueand expense sides of the income statement can make ABC far more powerful. © 2002 Wiley Periodicals,Inc.