Evaluating Information Technology Investments in Developing Economies Using Activity-Based Costing
Narcyz Roztocki, Heinz Roland Weistroffer
Abstract
Many firms in emerging economies invest in information technology primarily with the objective of protecting their cost advantages. This paper presents a framework for evaluating information technology investments by integrating the value chain model with activity-based costing. The proposed four-step approach is illustrated with a numerical example of a hypothetical manufacturing company seeking improvements in its cost structure.
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The Electronic Journal of Information Systems in Developing Countries. ISSN: 1681-4835 www.ejisdc.org