American Journal of Economics, Finance and Management
Articles Information
American Journal of Economics, Finance and Management, Vol.1, No.3, Jun. 2015, Pub. Date: May 18, 2015
The Use of Activity Based Costing and Balance Score Card for Strategic Performance Measurement: Perception of Chartered Accountants in Anambra State, Nigeria
Pages: 211-222 Views: 3057 Downloads: 4689
Authors
[01] Egbunike Amaechi Patrick, Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria.
[02] Ijeoma Ngozi Blessing, Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria.
[03] Ebubeogu Chigozie Gloria, Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria.
Abstract
The main objective of this study is to determine how the use of Activity Based Costing (ABC) and the Balanced Scorecard (BSC) provide managers with information for performance measurement. This is predicated on the increasing inadequacy of the traditional accounting system to provide the needed change in business environment, sparked by global competition and technological innovation. From these emanated four specific objectives, four research questions and four hypotheses. The study adopted the descriptive survey research design. The population of the study comprised chartered accountants in Anambra state, Taro Yamane formula was used to determine the sample size. The formulated hypotheses were tested using multiple regression technique. The findings revealed that the use of activity based costing with the financial perspective of the balanced scorecard is capable of providing managers with information for financial performance measurement; the use of activity-based costing with the customer perspective of the balanced scorecard is capable of providing managers with information for customer performance measurement; with the internal business process perspective of the balanced scorecard can provide managers with information for internal business monitoring; the learning and growth perspective of the balanced scorecard can provide managers with information for learning and growth monitoring. Based on this the study recommends that these two techniques be used simultaneously in order to provide managers with the requisite information for performance measurement. The practical implication of this is the improved relevance placed on synergy from the usage of the two techniques.
Keywords
Activity Based Costing, Balance Score Card, Strategic, Performance, Measurement
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