Strategic Implications of Accounting Systems for the European Road Freight Haulage Sector

Inaccuracy in product cost and customer profitability measurement is the reason for criticism of the use of traditional accounting (Johnson and Kaplan, 1987; Cooper and Kaplan, 1988). To succeed in today's competitive environment, cost measurement accuracy is essential. Activity-based costing (ABC) is more adequate for strategic decision support and cost measurement concerning product line and production decision pricing, development or abandonment than traditional accounting methods, according to Cooper and Kaplan (1988) and Johnson and Kaplan (1987). This paper uses a case study approach to analyze the effect of ABC introduction in a road-freight haulage company that is presently using the French "Comite National Routier" (CNR)-adopted traditional costing system. That cost cannot be allocated appropriately by the CNR system for resources consumed by customer-required services is evidenced by the paper. Consequently, customer to customer cross-subsidization is encouraged.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/03918440
• Authors:
  • Neves, Joao C
  • Justo, Sandra
• Publication Date: 2007-10

Language

• English

Media Info

• Media Type: Print
• Features: Appendices; Figures; References; Tables;
• Pagination: pp 429-455
• Serial:
  • International Journal of Transport Economics
  • Volume: 34
  • Issue Number: 3
  • ISSN: 0391-8440
  • Serial URL: http://www.libraweb.net/riviste.php?chiave=67

Subject/Index Terms

• TRT Terms: Accounting; Accuracy; Costs; Freight traffic; Profitability
• Uncontrolled Terms: Activity based costing; Hauling
• Geographic Terms: Europe
• Subject Areas: Administration and Management; Finance; Freight Transportation; Highways; I10: Economics and Administration;

Filing Info

• Accession Number: 01090968
• Record Type: Publication
• Files: TRIS
• Created Date: Mar 31 2008 8:03AM