SEGMENTAL ANALYSIS AND ACTIVITY BASED COSTIING FOR THE MODERN MARKETING CONCEPT (An Analytical and Case Study)

Abstract

A major characteristic of the twentieth century is the intensive competition faced by firms. The world market has become open and with the application of world trade agreement, firms will face a big challenge to stand against the world competition. Thus, satisfying customers and working on their needs will be one of the priorities that a firm has to work on. For this reason, marketing cost is an important item that should receive more attention by cost accountants. One of the important elements that will help the firms to compete is rationalizing marketing decisions. In order to rationalize these marketing decisions, the firms have to apply cost tools that help in providing information, that helps marketing decision makers to take their decisions that meet the customers wants and at the same time achieve profit to the firm.

This chapter is concerned with introducing a general outline for the research. First it presents the subject of the study, and its significance. Next, the purposes of doing this study, as well as the hypotheses are addressed. This chapter also highlights the limitations of the study and explains the methodology to be used in the research. Finally, a plan for the research is presented.

(1) Research Subject and Significance:

This research concentrates on examining the possibility of increasing the effective role of management accounting in rationalizing marketing costs