Proceedings of the 2011 International Conference on Informatics, Cybernetics, and Computer Engineering (ICCE2011) November 19-20, 2011, Melbourne, Australia

Volume 110 of the series Advances in Intelligent and Soft Computing pp 63-68

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

  • Zhao WeiAffiliated withSchool of Economics & Management, Shenyang Ligong University

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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.


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