Robert S. Kaplan and Robin Cooper’s work on activity-based costing has achieved the status of a minor classic in managerial
accounting literature. First published in 1997, it explained why activity-based costing has
advantages not only for accounting, but also for management and strategy. Moreover, it linked the advantages of activity-based costing to what, at the time, seemed to be novel ideas about economic value added and
enterprise systems. Nearly 10 years after its initial publication, the book seems
surprisingly fresh and relevant (notwithstanding the authors’ enthusiasm for the “information age” and the potential of enterprise systems). The authors present the case for activity-based costing in a clear and straightforward manner. The book is well-organized and surprisingly free of jargon. getAbstract recommends it as a good introduction to managers who are new to the subject. Even those familiar with the concept and practice of activity-based costing may find useful reminders of basic principles in this book.