Developing a strategic cost management model : combininig the balanced scorecard and activity-based costing in the context of diabetes education

Abstract

viii, 93 leaves : ill. ; 29 cm.The study presents the development of a strategic cost management model that combines activity-based costing (ABC) with principles of the balanced scorecard (BSC). The purpose of the combined ABC/BSC model is to provide cost information that could be used to evaluate strategy implementation, monitor premises underlying strategy that may need to be revised, and provide a strategic perspective to operational decisions. While ABC provides activity-specific cost information, the BSC framework of different performance perspectives (or activity dimensions) provides structure to data collection and organization, and facilitates strategic analysis. The model is applied in the healthcare context of a diabetes client education program, and the study includes a list of activities, activity drivers, and cost drivers for Type-2 diabetes education. It also provides a summary of costs per client category and proportion of resources consumed by different activity dimensions for a specific program