Activity-Based Costing as a Basis for Transfer Prices and Target Setting

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Standard

Activity-Based Costing as a Basis for Transfer Prices and Target Setting. / Lueg, Rainer.
in: International Journal of Economics and Business Administration, Jahrgang 8, Nr. 3, 2020, S. 489-499.

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Harvard

APA

Vancouver

Bibtex

@article{a6f8b0896414462590646b78bafa0c46,
title = "Activity-Based Costing as a Basis for Transfer Prices and Target Setting",
abstract = "Purpose: The article deals with a division of a large electronics company. The disvison intends to improve its product profitability using Time-driven Activity-based Costing. It also aims at aligning the incentives of executives by setting feasible transfer prices and motivating targets. Design/Methodology/Approach: The article illustrates how variance analysis and Activity-based Costing help managers to understand the different profitability of products better. Findings: The case study can serve both as a discussion basis in class as well as an exam for students in management, operations, and accounting. Practical Implications: Students will need to reflect on how a mechanical application of incentive systems can lead to dysfunctional decisions that run counter to a company's business model. Originality/Value: The open questions at the end of the article serve the purpose of raising students' awareness of the limits of cash-based incentive systems.",
keywords = "Management studies, Product profitability, activity-based costing, transfer prices, target setting, incentives, restructuring, shareholder value, customer satisfaction",
author = "Rainer Lueg",
year = "2020",
doi = "10.35808/ijeba/539",
language = "English",
volume = "8",
pages = "489--499",
journal = "International Journal of Economics and Business Administration",
issn = "2241-4754",
publisher = "International Strategic Management Association",
number = "3",

}

RIS

TY - JOUR

T1 - Activity-Based Costing as a Basis for Transfer Prices and Target Setting

AU - Lueg, Rainer

PY - 2020

Y1 - 2020

N2 - Purpose: The article deals with a division of a large electronics company. The disvison intends to improve its product profitability using Time-driven Activity-based Costing. It also aims at aligning the incentives of executives by setting feasible transfer prices and motivating targets. Design/Methodology/Approach: The article illustrates how variance analysis and Activity-based Costing help managers to understand the different profitability of products better. Findings: The case study can serve both as a discussion basis in class as well as an exam for students in management, operations, and accounting. Practical Implications: Students will need to reflect on how a mechanical application of incentive systems can lead to dysfunctional decisions that run counter to a company's business model. Originality/Value: The open questions at the end of the article serve the purpose of raising students' awareness of the limits of cash-based incentive systems.

AB - Purpose: The article deals with a division of a large electronics company. The disvison intends to improve its product profitability using Time-driven Activity-based Costing. It also aims at aligning the incentives of executives by setting feasible transfer prices and motivating targets. Design/Methodology/Approach: The article illustrates how variance analysis and Activity-based Costing help managers to understand the different profitability of products better. Findings: The case study can serve both as a discussion basis in class as well as an exam for students in management, operations, and accounting. Practical Implications: Students will need to reflect on how a mechanical application of incentive systems can lead to dysfunctional decisions that run counter to a company's business model. Originality/Value: The open questions at the end of the article serve the purpose of raising students' awareness of the limits of cash-based incentive systems.

KW - Management studies

KW - Product profitability

KW - activity-based costing

KW - transfer prices

KW - target setting

KW - incentives

KW - restructuring

KW - shareholder value

KW - customer satisfaction

UR - https://www.mendeley.com/catalogue/a06b54b4-958b-32ac-a64b-278eea73a59a/

U2 - 10.35808/ijeba/539

DO - 10.35808/ijeba/539

M3 - Journal articles

VL - 8

SP - 489

EP - 499

JO - International Journal of Economics and Business Administration

JF - International Journal of Economics and Business Administration

SN - 2241-4754

IS - 3

ER -

DOI

Zuletzt angesehen

Publikationen

  1. The Question Concerning Technology in China
  2. Protest 2.0 - Don't believe the Hype
  3. John Stuart Mill: Ausgewählte Werke
  4. Texte, Textsorten und Textvernetzung
  5. Neue Hoffnung für das UGB?
  6. Organisation
  7. Validity and Reliability of Willingness-to-Pay Estimates
  8. Marktorientierte Markenbewertung
  9. A unique nest-protection strategy in a new species of spider wasp
  10. Effect of biaxial compressive stress state on the microstructure evolution and deformation compatibility of rolled sheet Mg alloy AZ31 at room temperature
  11. Tolerance of ambiguity
  12. Stakeholder Value Matrix
  13. Impact of participation on sustainable water management planning: Comparative analysis of eight cases
  14. Identification of Dermatophyte and mold species by MALDI-TOF Mass Spectrometry
  15. Der BilWiss-2.0-Test
  16. “€14,875?!”
  17. Schreibwissenschaft methodisch
  18. Bat pest control contributes to food security in Thailand
  19. Subject Citizen. The Ambiguity of Citizenship and its Colonial Laboratories
  20. Germany must go back to its low-carbon future
  21. Tag questions across Irish English and British English
  22. Localized accelerated degradation of magnesium
  23. Vorwort
  24. Fehler beim Controlling
  25. Der Übersetzer als Performer
  26. ‚Ich sehe was, was Du nicht siehst‘
  27. The safe-and-sustainable-by-design concept
  28. NAVIGATING PROFESSIONAL CAREERS AND INTERNAL ACTIVISM
  29. Briefe schreiben in Klasse 9 und 11
  30. Kostenmanagement
  31. The Influence of Personality on Career Decisiveness of Business Students
  32. Fishing in the Amazonian Forest
  33. Eucamaragnathus desenderi, a new ground beetle species from Africa (Coleoptera, Carabidae)
  34. BAuA-Working Time Survey (BAuA-WTS)
  35. Green in grey
  36. BRANGE EFFECTS IN HEDONIC EVALUATION OF OLFACTORY STIMULI
  37. Art. 17 OECD MA
  38. The Need for Healthy Leadership in the Health Care Sector
  39. Gefühle, Werte und das ausgedehnte Selbst
  40. Maximum strength and power as determinants of on-ice sprint performance in elite U16 to adult ice hockey players