Advanced Search
MyIDEAS: Login

Activity-based life-cycle costing in long-range planning


Author Info

  • Edilberto J. Rodríguez Rivero
  • Jan Emblemsvåg
Registered author(s):


    Purpose – The aim of the paper is to present and illustrate a new approach for long-range planning. Design/methodology/approach – Building on well-tested frameworks such as activity-based costing (ABC), life-cycle costing (LCC) and Monte Carlo methods as well as earlier case studies, an approach is developed further and tested using a real-life case. Findings – The effectiveness of the approach is confirmed using a process-oriented framework (ABC) and introducing an LCC perspective. Monte Carlo methods are used to handle uncertainty and identify risks and critical success factors. Research limitation/implications – The presented research is a starting-point for developing a simple approach for budgeting that overcomes many of the problems with traditional budgeting. Practical implications – The paper shows how long-range planning can be performed in a realistic fashion without ending up in many of the traps of traditional budgeting. Originality/value – The paper presents an approach that can help corporations anticipate the future much more realistically than before.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL:;jsessionid=4C3FD8A6420A21E0C806C84F5F942680?contentType=Article&contentId=1640705
    Download Restriction: Cannot be freely downloaded

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Emerald Group Publishing in its journal Review of Accounting and Finance.

    Volume (Year): 6 (2007)
    Issue (Month): 4 (November)
    Pages: 370-390

    as in new window
    Handle: RePEc:eme:rafpps:v:6:y:2007:i:4:p:370-390

    Contact details of provider:
    Web page:

    Order Information:
    Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK

    Related research

    Keywords: Budgets; Business planning; Financial risk; Life-cycle costs; Monte Carlo methods;


    No references listed on IDEAS
    You can help add them by filling out this form.



    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:eme:rafpps:v:6:y:2007:i:4:p:370-390. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Louise Lister).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.