Despite its theoretical superiority, the activity-based costing (ABC) model has had only moderate success in replacing the traditional volume-based absorption costing models in complex organizations worldwide. Even in organizations that have launched ABC projects, the implementations often do...

We analytically model a setting in which two product centers share a manufacturing process, the issue being to assign the shared costs in a way that induces rational product center managers to truthfully report private information needed for an ex-ante best investment decision. The shared...

This paper models cost assignment to products as part of an activity sharing contract between two product centers, each concerned with reducing cycle time for its jobs. The allocations serve as an incentive mechanism (in this case, one which induces truthful reports of private information). The...

Purpose – In recent years, performance measurement and management (PMM) has received much attention from researchers and practitioners. Despite the growing use of PMM systems, companies experience difficulty in implementing such systems, with consequent risk of partial benefits or total goal...