Investigation of the relationship between contemporary cost management methods and improvement in financial performance

Josipa Mijoč, Dubravka Pekanov Starčević and Ivo Mijoč

Economic Research-Ekonomska Istraživanja, 2014, vol. 27, issue 1, 393-413

Abstract: This article gives an overview of contemporary cost management (CCM) methods (target costing [TC], activity-based costing [ABC] method, total quality management [TQM]), and presents the benefits of introducing them to business practices. Previous studies have considered the possibility of cost reduction and optimisation by introducing CCM methods thus improving company performance. This explorative empirical study is a first step in investigating the relationship between CCM methods and financial performance. The aim of the research is to clarify the conceptual and methodological ambiguities surrounding the justification of using adopted measurement scales. This study is based on the outcomes of a questionnaire completed by a representative sample of 48 Croatian limited companies. The findings highlight the influence of CCM methods on the financial performance of the companies surveyed. They also provide the basis for recommendations to management accountants and raise more questions for research. Based on psychometric characteristics of measurement constructs, the questionnaire applied in this study can serve as a starting point for instrument development in future research.

Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/1331677X.2014.966970 (text/html)
Access to full text is restricted to subscribers.

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:taf:reroxx:v:27:y:2014:i:1:p:393-413

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rero20

DOI: 10.1080/1331677X.2014.966970

Access Statistics for this article

Economic Research-Ekonomska Istraživanja is currently edited by Marinko Skare

More articles in Economic Research-Ekonomska Istraživanja from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().