Douglass Cagwin
Lander University
Dennis Ortiz
The University of Texas at Brownsville
Abstract: This paper examines whether a context-specific benefit is obtained from the use of Activity-based Costing (ABC) with the business initiatives Supply Chain Management (SCM), Technology Integration (TI). Context-specific benefit is operationalized by a composite measure of financial performance, Return on Assets (ROA). Top executives of 305 firms operating in the motor carrier industry furnished information regarding use of the initiatives. Dependent variable information is obtained from financial statement data filed with the U.S. government. Multiple regression analysis is used to identify the improvement in ROA associated with 1) use of each initiative and 2) concurrent use of two initiatives.
A simple effect for use of SCM and TI is confirmed. Context-specific benefits obtained from concurrent use of ABC with SCM and TI are identified. It is likely that ABC functions as an enabler of other improvement initiatives, providing the information necessary to optimize the effectiveness of SCM and TI.
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