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Micro-Level Public Entities’ Efficiency Reporting Using Combined Adaptation of Activity-Based Costing (ABC) and Free Disposable Hull (FDH) Analysis

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Abstract

This paper offers a contribution responding to the challenge of making efficiency reports from public organizations intelligible to society. The proposed methodology is based on a combination of Activity Based Costing System and Free Disposable Hull performance analysis. Per-unit cost of outcomes are derived from annual budget using cost drivers defined in terms of internal resources distribution and public services demand. Efficiency is, then, evaluated based on benchmarked key performance indicators (KPI). A simulated application using limited data available for the Brazilian Civil Aviation Agency (ANAC) illustrates how the strategy could increase data meaningfulness from a citizens’ perspective.

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Authors and Affiliations

  1. Department of Accounting, University of Brasília, Campus Universitário Darcy Ribeiro, Brasília, DF, 70910-900, Brazil

    Diego Muniz Benedetti & Diana Vaz de Lima

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  1. Diego Muniz Benedetti
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  2. Diana Vaz de Lima
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Correspondence to Diego Muniz Benedetti.

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Benedetti, D.M., de Lima, D.V. Micro-Level Public Entities’ Efficiency Reporting Using Combined Adaptation of Activity-Based Costing (ABC) and Free Disposable Hull (FDH) Analysis. Public Organiz Rev 22, 1121–1138 (2022). https://doi.org/10.1007/s11115-021-00581-x

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