Activity-Based Information Integrating the Operations Strategy

José Augusto da Rocha de Araújo, Reinaldo Pacheco da Costa


In the globalized world, companies seek for new operations strategies to ensure world corporate success. This article analyzes how the cost management models – both traditional and activity-based, aid the planning and management of corporate globalized operations. The efficacy of the models application depends on their alignment with the competitive strategy. Companies must evaluate the nature of the competition and its competitive priorities; they should then define the necessary and sufficient dependence level on costs information. In this article, three dependence levels are presented: operational, decision support and strategic control. The result of the research shows the importance of alignment between the cost management model and the competitive strategy for corporate success, and confirms the adequacy of the activity-based costing model as a supporting tool for decision taking in a global strategy. Case studies in world class companies in Brazil are presented.

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