Evaluating Information Technology Investments: A Fuzzy Activity-Based Costing Approach
Journal of Information Science and Technology, Vol. 2 No. 4, pp. 30-43, 2005
14 Pages Posted: 26 Apr 2007
This paper proposes a framework for evaluating information technology investments, integrating value chain analysis with activity-based costing and fuzzy logic. The proposed method should be particularly useful for businesses in emerging economies, where an uncertain economic environment is often combined with a lack of dependable, historical accounting data. The framework is illustrated by means of a hypothetical manufacturing company and a triangular fuzzy set membership function.
Keywords: activity-based costing, developing countries, emerging economies, fuzzy logic, value-chain analysis
JEL Classification: O00
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