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Synergistic Role of Balanced Scorecard/Activity Based Costing and Goal Programming Combined Model on Strategic Cost Management

Author

Listed:
  • Mohammad Taleghani

    (Department of Industrial Management, Rasht Branch, Islamic Azad University, Rasht, Iran.)

Abstract

During the past few years, we have seen a significant shift in cost accounting and management. In the new business environment, cost management has become a critical skill, but it is not sufficient for simply reducing costs; instead, costs must be managed strategically. Application of a successful strategic cost management (StraCM) system plays the significant role in success of organization performance. In this study, we want to illustrate how the goal programming model in combination with tools of the StraCM can affect in improving organizations' performance and optimize cost management decisions making. For this, we present a conceptual model with an integrated approach of balanced scorecard, activity based costing and goal programming model. Then for evaluating the proposed model, a numerical example with its solution procedure will be illustrated.

Suggested Citation

  • Mohammad Taleghani, 2017. "Synergistic Role of Balanced Scorecard/Activity Based Costing and Goal Programming Combined Model on Strategic Cost Management," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 7(3), pages 586-593.
    • Handle: RePEc:eco:journ1:2017-03-78
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    References listed on IDEAS

    as
    1. Wang, Chun-Hsien & Lu, Iuan-Yuan & Chen, Chin-Bein, 2010. "Integrating hierarchical balanced scorecard with non-additive fuzzy integral for evaluating high technology firm performance," International Journal of Production Economics, Elsevier, vol. 128(1), pages 413-426, November.
    2. Shapiro, Jeremy F., 1999. "On the connections among activity-based costing, mathematical programming models for analyzing strategic decisions, and the resource-based view of the firm," European Journal of Operational Research, Elsevier, vol. 118(2), pages 295-314, October.
    3. Dylan Jones & Mehrdad Tamiz, 2010. "Practical Goal Programming," International Series in Operations Research and Management Science, Springer, edition 1, number 978-1-4419-5771-9, February.
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    Keywords

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    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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