IDEAS home Printed from
   My bibliography  Save this article

Activity-Based Costing As Information Basis For Efficient Strategic Management Process


  • Đorđe Kaličanin
  • Vladan Knežević


Activity-based costing (ABC) provides an information basis for monitoring and controlling one of two possible sources of competitive advantage, low-cost production and low-cost distribution. On the basis of cost information about particular processes and activities, management may determine their contribution to the success of a company, and may decide to transfer certain processes and activities to another company. Accuracy of cost information is conditioned by finding an adequate relation between overhead costs and cost objects, identifying and tracing cost drivers and output measures of activities, and by monitoring cost behaviour of different levels of a product. Basic characteristics of the ABC approach, such as more accurate cost price accounting of objects, focusing on process and activity output (rather than only on resource consumption) and on understanding and interpretation of cost structure (rather than on cost measurement), enable managers to estimate and control future costs more reliably. Thus the ABC methodology provides a foundation for cost tracing, analysis, and management, which entails making quality and accurate operative and strategic decisions as a basis for the long-term orientation of a company. ABC is also complementary to the widely accepted technique of strategic planning and strategy implementation known as Balanced Scorecard (BSC).

Suggested Citation

  • Đorđe Kaličanin & Vladan Knežević, 2013. "Activity-Based Costing As Information Basis For Efficient Strategic Management Process," Economic Annals, Faculty of Economics, University of Belgrade, vol. 58(197), pages 95-120, April – J.
  • Handle: RePEc:beo:journl:v:58:y:2013:i:197:p:95-120

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    activity-based costing; competitive advantage; strategic management; Balanced Scorecard;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:beo:journl:v:58:y:2013:i:197:p:95-120. 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: (Goran Petrić). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.