1475-679X/asset/JOAR_left.gif?v=1&s=d0573f42c81e33c62eb3cef3f60df4af770b38d0)
The Association Between Activity-Based Costing and Manufacturing Performance
Article first published online: 17 DEC 2002
DOI: 10.1111/1475-679X.00068
University of Chicago on behalf of the Institute of Professional Accounting, 2002
1475-679X/asset/cover.gif?v=1&s=5ce2f96163f867c4784b4464730850978959696d "Journal of Accounting Research")
Additional Information
How to Cite
Ittner, C. D., Lanen, W. N. and Larcker, D. F. (2002), The Association Between Activity-Based Costing and Manufacturing Performance. Journal of Accounting Research, 40: 711–726. doi: 10.1111/1475-679X.00068
Publication History
- Issue published online: 17 DEC 2002
- Article first published online: 17 DEC 2002
- Abstract
- Cited By
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.