A Study on the Customer Profitability Analysis Using Activity-Based Costing

  • Zhao Wei
Conference paper

DOI: 10.1007/978-3-642-25185-6_9

Part of the Advances in Intelligent and Soft Computing book series (AINSC, volume 110)
Cite this paper as:
Wei Z. (2011) A Study on the Customer Profitability Analysis Using Activity-Based Costing. In: Jiang L. (eds) Proceedings of the 2011 International Conference on Informatics, Cybernetics, and Computer Engineering (ICCE2011) November 19-20, 2011, Melbourne, Australia. Advances in Intelligent and Soft Computing, vol 110. Springer, Berlin, Heidelberg

Abstract

Activity-Based Costing (ABC) which has become an important aspect of manufacturing or service organizations can be defined as a methodology that measures the cost and performance of activities, resources and cost objects. It can be considered as an alternative paradigm to traditional cost-based accounting systems. Customer Profitability Analysis (CPA) is an important path to a more successful business operation, offering new insights into enhancing company performance. A well-designed and implemented ABC system is a powerful aid to management evaluation and decision-making, thereby improving organizational performance. This paper was aimed at unravelling the practical complexities of implementing ABC for CPA purposes.

Keywords

Activity-Based Costing (ABC) Customer Profitability Analysis (CPA) Activities Cost 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2011

Authors and Affiliations

  • Zhao Wei
    • 1
  1. 1.School of Economics & ManagementShenyang Ligong UniversityShenyangChina

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