Though constructed with different purposes, the theory of constraints and activity based costing systems pose a choice problem in respect of product mix decisions. We believe that the existing explanation of short versus long run criterion to explain firms' choice between these two systems is...

No abstract available

This case study illustrates how standard or traditional costing systems can reveal information that e.g. ABC methods would reveal, if appropriate variances are calculated. Variance analysis on disaggregated and timely information not only allows for timely corrective action, but it can also...

This case focuses on the application of management accounting techniques such as linear programming and regression analysis in the framework of activity-based costing and the theory of constraints. Students are invited to transform technical production data (process map) into data that is...