Customer accounting with budgets and activity-based costing: a case study in electronic commerce

Research output: Journal contributionsJournal articlesResearchpeer-review

Authors

This case study deals with an unexpected budgetary loss of an online wine trader. It can serve both as a discussion basis in class as well as an exam for advanced Master students in management, marketing, and accounting. The case illustrates how variance analysis and Activity-based Costing help managers to better understand the different profitability of customer groups in their portfolios. The rather open questions at the end of the case study allow for an adjustment to the level of knowledge of the students. They also serve the purpose to raise students’ awareness for the limits of customer accounting. Students will need to reflect on how a mechanical application of customer profitability analysis can lead to dysfunctional decisions that run counter to a company’s business model.
Original languageEnglish
JournalInternational Journal of Strategic Management
Volume14
Issue number2
Pages (from-to)25-36
Number of pages12
ISSN1555-2411
DOIs
Publication statusPublished - 2014
Externally publishedYes

    Research areas

  • Management studies - Customer Accounting, Customer Profitability Analysis, budget, variance analysis, business model, management accounting, e-commerce, trade, case study, teaching notes, shareholder value, dysfunctional decision making

DOI

Recently viewed

Publications

  1. Jenny Anger, Four Metaphors of Modernism
  2. Optimal grazing management rules in semi-arid rangelands with uncertain rainfall
  3. Fast Supercapacitor Charging for Electromagnetic Converter Systems by Self Powered Boost Circuit
  4. Foraging loads of stingless bees and utilisation of stored nectar for pollen harvesting
  5. The same, but different? Learning activities, perceived learning success, and social support during the practical term of teacher education in times of COVID-19
  6. Prior entry explains order reversals in the attentional blink
  7. Endogenous environmental policy for small open economies with transboundary pollution
  8. The same, but different
  9. Deriving Collaboration Cases in Production Networks Considering Smart Services
  10. Words and deeds
  11. Green Big Data: A Green IT/Green IS Perspective on Big Data
  12. Change in Women's Descriptive Representation and the Belief in Women's Ability to Govern: A Virtuous Cycle
  13. The Hanoverian Supply Chain Model: modelling the impact of production planning and control on a supply chain's logistic objectives
  14. Partitioning Behavior of Per- and Polyfluoroalkyl Compounds between Pore Water and Sediment in Two Sediment Cores from Tokyo Bay, Japan
  15. The Bali Convention: flexibility of targets and instruments inevitable
  16. Centralized and decentralized utilization of organic residues for lactic acid production
  17. Wage Structures, Fairness Perceptions, and Job Satisfaction
  18. How Participatory Should Environmental Governance Be?
  19. Music Spaces in Conflict
  20. Do wild bees complement honeybee pollination of confection sunflowers in Israel?
  21. Bush encroachment control and risk management in semi-arid rangelands
  22. How to serve sustainability performance in businesses?
  23. Gamification and sustainable behaviour
  24. The Hidden Space of Production
  25. Internet
  26. BBS futur 2.0
  27. Das Bild im Monitor
  28. Predictive mapping of species richness and plant species' distributions of a peruvian fog oasis along an altitudinal gradient

Press / Media

  1. Der geschlechtslose Anus