University of Oulu

Järvinen, J. & Väätäjä, K. (2018). Customer Profitability Analysis Using Time-Driven Activity-Based Costing: Three Interventionist Case Studies, (67)1, 27-47.

Customer profitability analysis using time-driven activity-based costing : three interventionist case studies

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Author: Järvinen, Janne1; Väätäjä, Kim2
Organizations: 1University of Oulu, Oulu Business School
2weVision Oy
Format: article
Version: published version
Access: open
Online Access: PDF Full Text (PDF, 0.4 MB)
Persistent link:
Language: English
Published: Association of Business Schools Finland, 2018
Publish Date: 2019-06-25


Time-driven activity-based costing (TDABC) is a potential solution for customer profitability analysis (CPA), especially in industries with high overhead costs and a high number of logistical and/or sales transactions. Accordingly, this study draws on the typology provided by Lind and Strömsten (2006) to investigate how companies with different customer interfaces make use of time-driven activity-based costing in their customer profitability analyses. We build our investigation primarily on the interventionist method and participant observation. Our findings highlight the potential benefit for firms when modern costing connects with customer-focused operations. However, challenges include a lack of process time information as well as functioning information systems and the ability to develop strong service delivery capabilities. We contribute to the scarce knowledge on the implementation and use of sophisticated costing methods in SMEs from a customer-oriented perspective.

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Series: Nordic journal of business
ISSN: 2342-9003
ISSN-E: 2342-9011
ISSN-L: 2342-9003
Volume: 67
Issue: 1
Pages: 27 - 47
Type of Publication: A1 Journal article – refereed
Field of Science: 512 Business and management
Funding: Data of this study was gathered during a project funded by TEKES.
Copyright information: © The Authors & Association of Business Schools Finland, 2018.