USING ACTIVITY-BASED INFORMATION FOR IMPROVING STRATEGIC CONTROL: A Proposed Framework, An Applied Study

Abstract

Nowadays, strategic control has become an important issue. This is due to its effective role in the achievement of the strategic objectives and budgetary targets of any organization. Strategic control is the procedures that assist the organization in establishing strategies, maintaining the dynamic alignment of strategies, and ensuring that the strategies remain effective over time

Unfortunately, many businesses still using volume-based information which .fails to support this impmtant role of strategic control. This failure results from that traditional cost systems focus primarily attention at the cost centers, which have been viewed as organizational units rather than cost accumulation points.

As a result, activity-based information (ABI) is fast becoming the essential practical solution for this problem. This research therefore attempts to propose a conceptual normative framework for activity­ based information through making integration between the activity­ based costing II (ABC II) and/or activity analysis on one side and each one of activity-based management (ABM) tools on the other side. This framework is used to improve the strategic control via improving budgeting and budgetary control.