Open AccessInvestment In Cost Accounting Systems: Decision Criteria
Author(s) -
Linda R. Martin,
Kathy C. Stevens
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v6i3.6286
Subject(s) - cost accounting , accounting information system , throughput accounting , perspective (graphical) , investment (military) , cost–volume–profit analysis , accounting , management accounting , relevant cost , business , computer science , risk analysis (engineering) , economics , total cost , financial accounting , politics , political science , law , artificial intelligence
A current debate among accountants focuses on the amount of information collected by traditional cost accounting systems. Critics have said that these systems are inadequate because they provide insufficient detail for optimal decision making and have proposed the adoption of more elaborate cost systems. This paper analyzes cost accounting systems from a cost-benefit perspective and find that in some circumstances traditional methods with their aggregated level of detail are economically optimal.