The Association Between Activity‐Based Costing and Manufacturing Performance

Christopher D. Ittner, William N. Lanen and David F. Larcker

Journal of Accounting Research, 2002, vol. 40, issue 3, 711-726

Abstract: This study examines the association between activity‐based costing and manufacturing performance. Results using a cross‐sectional sample of manufacturing plants indicates that extensive ABC use is associated with higher quality levels and greater improvements in cycle time and quality, and is indirectly associated with manufacturing cost reductions through quality and cycle time improvements. However, on average, extensive ABC use has no significant association with return on assets. Instead, we find weak evidence that the association between ABC and accounting profitability is contingent on the plant’s operational characteristics.

Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (44)

Downloads: (external link)
https://doi.org/10.1111/1475-679X.00068

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:joares:v:40:y:2002:i:3:p:711-726

Ordering information: This journal article can be ordered from
https://onlinelibrary.wiley.com/journal/1475679x

Access Statistics for this article

Journal of Accounting Research is currently edited by Philip G. Berger, Anna Costello, Luzi Hail, Valeri Nikolaev, Haresh Sapra, Laurence van Lent and Regina Wittenberg Moerman

More articles in Journal of Accounting Research from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().