Integrating activity based costing with Balanced Scorecard in strategic cost management

ABSTRACTINTEGRATING ACTIVITY BASED COSTING WITH BALANCED SCORECARDIN STRATEGIC COST MANAGEMENTÖzlem KOCA ABAN GENEL O LUDepartment of ManagementAfyonkarahisar Kocatepe University, The Institute of Social SciencesAgust 2006Advisor: Assist.Prof. Dr. Tülay TELL O LUTo increase power of competition with today?s economic and technologicconditions and changing marketing conditions; using new methods of product costdetermination in firms has become unavoidably necessary. New methods have beendeveloped to measure success of used new methods and organization?s performance.Activity based costing is a system of optaining real cost of products. Balanced scorecardhas gained prominence in accounting research as a way of integrating financial and non-financial performance measures into an overall control system.In the study, activity based costing, activity based management and balancedscorecard concepts are defined and the necessity of them for foundations is explained.Furthermore, integrating activity based costing and balanced scorecard is examined.Implementing with integration activity based costing and balanced scorecard, it hasbeen offered as a model to management.