IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2017-03-78.html
   My bibliography  Save this article

Synergistic Role of Balanced Scorecard/Activity Based Costing and Goal Programming Combined Model on Strategic Cost Management

Author

Listed:
  • Mohammad Taleghani

    (Department of Industrial Management, Rasht Branch, Islamic Azad University, Rasht, Iran.)

Abstract

During the past few years, we have seen a significant shift in cost accounting and management. In the new business environment, cost management has become a critical skill, but it is not sufficient for simply reducing costs; instead, costs must be managed strategically. Application of a successful strategic cost management (StraCM) system plays the significant role in success of organization performance. In this study, we want to illustrate how the goal programming model in combination with tools of the StraCM can affect in improving organizations' performance and optimize cost management decisions making. For this, we present a conceptual model with an integrated approach of balanced scorecard, activity based costing and goal programming model. Then for evaluating the proposed model, a numerical example with its solution procedure will be illustrated.

Suggested Citation

  • Mohammad Taleghani, 2017. "Synergistic Role of Balanced Scorecard/Activity Based Costing and Goal Programming Combined Model on Strategic Cost Management," International Journal of Economics and Financial Issues, Econjournals, vol. 7(3), pages 586-593.
    • Handle: RePEc:eco:journ1:2017-03-78
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/ijefi/article/download/4959/pdf
    Download Restriction: no
    File URL: http://www.econjournals.com/index.php/ijefi/article/view/4959/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dylan Jones & Mehrdad Tamiz, 2010. "Practical Goal Programming," International Series in Operations Research and Management Science, Springer, edition 1, number 978-1-4419-5771-9, April.
    2. Wang, Chun-Hsien & Lu, Iuan-Yuan & Chen, Chin-Bein, 2010. "Integrating hierarchical balanced scorecard with non-additive fuzzy integral for evaluating high technology firm performance," International Journal of Production Economics, Elsevier, vol. 128(1), pages 413-426, November.
    3. Shapiro, Jeremy F., 1999. "On the connections among activity-based costing, mathematical programming models for analyzing strategic decisions, and the resource-based view of the firm," European Journal of Operational Research, Elsevier, vol. 118(2), pages 295-314, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francisco Salas-Molina & Filippo Bistaffa & Juan A. Rodriguez-Aguilar, 2024. "A General Approach for Computing a Consensus in Group Decision Making That Integrates Multiple Ethical Principles," Papers 2401.07818, arXiv.org, revised Mar 2024.
    2. Ramos, Francisco López & Batres, Rafael & De-la-Cruz-Márquez, Cynthia Griselle & Anzures, Melina López, 2023. "Optimization models for nopal crop planning with land usage expansion and government subsidy," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
    3. Walter Briec & Laurent Cavaignac & Kristiaan Kerstens, 2020. "Input Efficiency Measures: A Generalized, Encompassing Formulation," Operations Research, INFORMS, vol. 68(6), pages 1836-1849, November.
    4. Carland, Corinne & Goentzel, Jarrod & Montibeller, Gilberto, 2018. "Modeling the values of private sector agents in multi-echelon humanitarian supply chains," European Journal of Operational Research, Elsevier, vol. 269(2), pages 532-543.
    5. Zgajnar, Jaka & Kavcic, Stane, 2012. "Farm management support based on mathematical programming; an example of fertilization planning," Agroeconomia Croatica, Croatian Society of Agricultural Economists, vol. 2(1), pages 1-8, March.
    6. Huang, Zishuo & Yu, Hang & Chu, Xiangyang & Peng, Zhenwei, 2017. "A goal programming based model system for community energy plan," Energy, Elsevier, vol. 134(C), pages 893-901.
    7. Foad Mahdavi Pajouh & Dahai Xing & Yingjue Zhou & Sharethram Hariharan & Balabhaskar Balasundaram & Tieming Liu & Ramesh Sharda, 2013. "A Specialty Steel Bar Company Uses Analytics to Determine Available-to-Promise Dates," Interfaces, INFORMS, vol. 43(6), pages 503-517, December.
    8. Jones, Dylan & Jimenez, Mariano, 2013. "Incorporating additional meta-objectives into the extended lexicographic goal programming framework," European Journal of Operational Research, Elsevier, vol. 227(2), pages 343-349.
    9. Mila Bravo & Dylan Jones & David Pla-Santamaria & Francisco Salas-Molina, 2022. "Encompassing statistically unquantifiable randomness in goal programming: an application to portfolio selection," Operational Research, Springer, vol. 22(5), pages 5685-5706, November.
    10. Mila Bravo & Dylan Jones & David Pla-Santamaria & Graham Wall, 2018. "Robustness of weighted goal programming models: an analytical measure and its application to offshore wind-farm site selection in United Kingdom," Annals of Operations Research, Springer, vol. 267(1), pages 65-79, August.
    11. Christoph Stallkamp & Justus Steins & Manuel Ruck & Rebekka Volk & Frank Schultmann, 2022. "Designing a Recycling Network for the Circular Economy of Plastics with Different Multi-Criteria Optimization Approaches," Sustainability, MDPI, vol. 14(17), pages 1-23, September.
    12. Zgajnar, Jaka & Kavcic, Stane, 2011. "Weighted Goal Programming and Penalty Functions: Whole-farm Planning Approach Under Risk," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 118033, European Association of Agricultural Economists.
    13. Stamenkovska, Ivana Janeska & Dimitrievski, Dragi & Erjavec, Emil & Stojcheska, Aleksandra Martinovska & Zgajnar, Jaka, 2014. "A weighted goal programming model for vegetable production planning in Republic of Macedonia," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182967, European Association of Agricultural Economists.
    14. Francisco Salas-Molina & Juan Antonio Rodr'iguez Aguilar & Filippo Bistaffa, 2020. "Shared value economics: an axiomatic approach," Papers 2006.00581, arXiv.org.
    15. Z Degraeve & F Roodhooft & B van Doveren, 2005. "The use of total cost of ownership for strategic procurement: a company-wide management information system," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(1), pages 51-59, January.
    16. Hocine, Amine & Kouaissah, Noureddine & Bettahar, Samir & Benbouziane, Mohamed, 2018. "Optimizing renewable energy portfolios under uncertainty: A multi-segment fuzzy goal programming approach," Renewable Energy, Elsevier, vol. 129(PA), pages 540-552.
    17. Jones, Dylan & Firouzy, Sina & Labib, Ashraf & Argyriou, Athanasios V., 2022. "Multiple criteria model for allocating new medical robotic devices to treatment centres," European Journal of Operational Research, Elsevier, vol. 297(2), pages 652-664.
    18. Hashem Omrani & Mahsa Valipour & Ali Emrouznejad, 2019. "Using Weighted Goal Programming Model for Planning Regional Sustainable Development to Optimal Workforce Allocation: An Application for Provinces of Iran," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(3), pages 1007-1035, February.
    19. Reza Khorramshahgol, 2012. "An Integrated Strategic Approach To Supplier Evaluation And Selection," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 11(01), pages 55-76.
    20. González-Pachón, Jacinto & Romero, Carlos, 2016. "Bentham, Marx and Rawls ethical principles: In search for a compromise," Omega, Elsevier, vol. 62(C), pages 47-51.

    More about this item

    Keywords

    Strategic Cost Management; Goal Programming; Balanced Scorecard; Activity Based Costing;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2017-03-78. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.