Activity Based Costing as a Marketing Tool

By Anna Maria Moisello.

Published by The Organization Collection

Format Price
Article: Print $US10.00
Article: Electronic $US5.00

In a competitive scenario, characterized by quick changes, firms need to place side by side cost leadership and focus strategies, pursuing the customer value creation and complying with the cost constraint. In this context management needs effective tools to co-ordinate marketing, which runs customer value creation, and control, which manages the costs which firm has to bear to produce this value. The aim of this theoretic study is to analyze the Activity Based Costing (ABC) evolution from cost accounting methodology to management tool focusing on the role of activity based information for marketing. So the paper discusses these topics:
Activity based costing supports effective marketing decision making in different contexts: marketing processes restructuring, marketing mix choices and pricing; ABC is also an effective tool to manage customer profitability because it measures costs for customer, or customer class, it gives evidence to the variables that affect customer profitability and it supports price differentiation for customer classes; activity based costing makes possible the integration between marketing and control.

Keywords: Activity Based Costing, Marketing, Value Creation, Control

International Journal of Knowledge, Culture and Change Management, Volume 8, Issue 8, pp.59-68. Article: Print (Spiral Bound). Article: Electronic (PDF File; 535.100KB).

Dr. Anna Maria Moisello

Researcher, Department of Business Research "Riccardo Argenziano", University of Pavia, Pavia, Italy

Graduated in Economics at the University of Pavia (Italy). Doctorate in “Business Economics and Administration” achieved at the “Bocconi University” of Milan (Italy). Current position: researcher in “Business Economics and Administration”; main research interests in management accounting and control. Current teaching: “Business Economics and Administration”, “Budgeting” and “Cost Accounting” at the faculty of Economics of the University of Pavia.

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