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

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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

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  1. Dirk Zuther

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