ISSN:
1540-5915
Source:
Blackwell Publishing Journal Backfiles 1879-2005
Topics:
Economics
Notes:
We consider the activity-based costing situation, in which for each of several comparable operational units, multiple cost drivers generate a single cost pool. Our study focuses on published data from a set of property tax collection offices, called rates departments, for the London metropolitan area. We define what may be called benchmark or most efficient costs per unit of driver. A principle of maximum performance efficiency is proposed, and an approach to estimating the benchmark unit costs is derived from this principle. A validation approach for this estimation method is developed in terms of what we call normal-like-or-better performance effectiveness. Application to longitudinal data on a single unit is briefly discussed. We also consider some implications for the more routine case when costs are disaggregated to subpools associated with individual cost drivers.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1111/j.1540-5915.2000.tb00944.x
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