Riflessioni sul modello di ottimizzazione dei cost driver di Babad e Balachandran

Abstract

Cost drivers selection is a crucial decision in the construction of an activity based cost accounting model. The accuracy of the cost measures and the usability of the model depend on it. Cost drivers selection implies the consideration of the cost of the measurement, the degree of correlation and the behavioral effects induced by the choice. Some studies on the theme face the problem with mathematical models of optimization, among them the model of Babad and Balachandran is of particular interest. The aim of the paper is to offer some critical considerations about the Babad and Balachandran's model for cost driver selection and application to the activity based costing.