This study examines the impact of three cost accounting system (CAS) designs – traditional costing, activity-based costing, and time-based accounting – on manufacturing performance as measured in terms of demand fulfillment rate, cycle time, and net operating income – within a flexible,...

Purpose This chapter takes a critical perspective on the conventional wisdom that more advanced cost allocation methods have the potential to provide a more accurate picture of “true” cost, inevitably leading to optimal product mix and pricing decisions, and ultimately to greater...