The TOC-ABC choice debate for product mix decisions : introducing asset specificity as an alternate explanation Sridharan, V. G., Krishnan, Ranjani, Vergauwen, Philip and Arthanari, Tiru 2009, The TOC-ABC choice debate for product mix decisions : introducing asset specificity as an alternate explanation, Journal of global business issues, vol. 3, no. 1, Spring, pp. 105-110. Attached Files Name Description MIMEType Size Downloads sridharan-tocabcchoice-2009.pdf Published version application/pdf 210.66KB 875 Title The TOC-ABC choice debate for product mix decisions : introducing asset specificity as an alternate explanation Author(s) Sridharan, V. G. Krishnan, Ranjani Vergauwen, Philip Arthanari, Tiru Journal name Journal of global business issues Volume number 3 Issue number 1 Season Spring Start page 105 End page 110 Total pages 6 Publisher Journal of Global Business Issues Place of publication Burbank, Calif. Publication date 2009 ISSN 1931-311X Summary Though constructed with different purposes, the theory of constraints and activity based costing systems pose a choice problem in respect of product mix decisions. We believe that the existing explanation of short versus long run criterion to explain firms' choice between these two systems is incomplete and offer an alternate explanation based on asset specificity. We argue that the extent to which specialized resources are deployed to make products in a mix determines the choice. We present a 2*2 matrix stating that when asset specificity is high, a firm is likely to choose ABC instead of TOC since ABC makes a large portion of costs visible to enable control. However, the choice is likely to be a TOC-ABC combination when the manufacture of asset specific products is also constrained by bottlenecks. Notes Every reasonable effort has been made to ensure that permission has been obtained for items included in Deakin Research Online. If you believe that your rights have been infringed by this repository, please contact drosupport@deakin.edu.au Language eng Field of Research 150399 Business and Management not elsewhere classified Socio Economic Objective 910499 Management and Productivity not elsewhere classified HERDC Research category C1.1 Refereed article in a scholarly journal Copyright notice ©2009, Journal of Global Business Issues Free to Read? Yes Persistent URL http://hdl.handle.net/10536/DRO/DU:30029808 Document type: Journal Article Collections: Faculty of Business and Law School of Accounting, Economics and Finance Open Access Collection Related Links Link Description Connect to published version (restricted access) Go to link with your DU access privileges     Link to Related Work The TOC-ABC choice debate for product mix decisions : introducing asset specificity as an alternate explanation (deposited 19-12-2021) Journal of Global Business Issues (JGBI) Publisher (deposited 11-07-2012)   Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved. Every reasonable effort has been made to ensure that permission has been obtained for items included in DRO. If you believe that your rights have been infringed by this repository, please contact drosupport@deakin.edu.au. Versions Version Filter Type Tue, 24 Aug 2010, 14:18:09 EST Mon, 20 Feb 2012, 13:22:00 EST Wed, 06 Feb 2013, 10:03:08 EST Tue, 05 Dec 2017, 09:17:04 EST Fri, 07 Sep 2018, 15:02:22 EST Filtered Full Citation counts:   Cited 0 times in TR Web of Science Cited 0 times in Scopus Search Google Scholar Access Statistics: 783 Abstract Views, 875 File Downloads  -  Detailed Statistics Created: Tue, 24 Aug 2010, 14:18:04 EST by Leanne Swaneveld