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Change in the relevance of cost information and costing systems: evidence from two Italian surveys

Author

Listed:
  • Lino Cinquini
  • Paolo Collini
  • Alessandro Marelli
  • Andrea Tenucci

Abstract

This paper aims to contribute to the stream of the “costing system change” research agenda by studying the role played by contextual factors, adopting a demand-side approach (Ax and Bjørnenak in Issues in management accounting. Prentice Hall, New Jersey, 2007 ), and by highlighting the movements of change in the adoption and use of Activity-Based Costing (ABC) and Target Costing (TC) (Burns and Vaivio in Manag Account Res 12(4):389–402, 2001 ; Schoute in Br Account Rev 43:120–134, 2011 ). Thus, the possibility of costing change with ramifications beyond those typically studied in the literature concerning the functional view of cost accounting is discussed and demonstrated (Sturdy in Manag Learn 35(2):155–179, 2004 ; Tsoukas and Chia in Organ Sci 13(5):567–582, 2002 ). This paper compares the results of two surveys over a decade apart on two samples of large-size manufacturing companies (132 and 86 companies, respectively) that investigated changes in cost objects, costing purposes and the adoption and use of two advanced costing techniques, ABC and TC. The findings reveal an increase in the number of cost objects considered, a wider use of cost information for managerial purposes and a slight increase in the use of ABC and TC in the sample. The discussion shows an increase of awareness of potentiality of cost information to support decision-making, and a refinement of cost allocation processes. The presence of “forward” and “backward” movements of ABC and TC changes in adoption and use, addresses the possibility that costing change has different directions than those usually considered under a rational view of cost accounting. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Lino Cinquini & Paolo Collini & Alessandro Marelli & Andrea Tenucci, 2015. "Change in the relevance of cost information and costing systems: evidence from two Italian surveys," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(3), pages 557-587, August.
    • Handle: RePEc:kap:jmgtgv:v:19:y:2015:i:3:p:557-587
    DOI: 10.1007/s10997-013-9275-4
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    References listed on IDEAS

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    Cited by:

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    3. Shekerta Aliu, 2023. "Do electric and gas utilities use regulatory information for decision-making and control? An exploratory study from Italy," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2023(2 Suppl.), pages 37-64.
    4. Evdokia I. Tsifora & Prodromos D. Chatzoglou, 2016. "Exploring the effects of firm and product characteristics on cost system’s features," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 93-116.
    5. Daniela Ruggeri & Carmela Rizza, 2017. "Accounting information system innovation in interfirm relationships," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(2), pages 203-225, May.
    6. Rosanna Spanò & Adele Caldarelli & Luca Ferri & Marco Maffei, 2020. "Context, culture and control: a case study on accounting change in an Italian regional health service," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(1), pages 229-272, March.
    7. Francesca Manes-Rossi & Alessandra Allini & Rosanna Spanò & Riccardo Macchioni, 2018. "Performance management change in archaeological sites: The case of Herculaneum Conservation Project," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(4), pages 947-979, December.
    8. Riccardo Giannetti & Alessandro Marelli, 2016. "Il ruolo degli strumenti di cost management nello sviluppo di nuovi prodotti sostenibili," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2016(2), pages 33-68.
    9. Graziano Coller, 2018. "L?eterno divario tra teoria e prassi del pricing nel Management Accounting," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2018(2), pages 11-33.

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