An International Meeting of the American Accounting Association American Accounting Association 2006 Annual Meeting August 6–9, 2006 Washington, D.C.

James E. Groff
University of Texas at San Antonio

Marshall K. Pitman
University of Texas at San Antonio

Abstract: The Balanced Score Card (BSC) is a widely used performance measurement technique. Capital budgeting using discounted cash flow methods is widely used to allocate resources to projects. At present there is no formal way to integrate the multiple criteria BSC performance measures and the single criterion techniques used in capital budgeting. This paper proposes a method, based on data envelopment analysis (DEA) that integrates capital budgeting and the BSC. A simulation is used to show the differences between the traditional and proposed capital budgeting techniques.

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