Costing System Sophistication and Quality of Provided Information

Abstract

This chapter analyzes the research question (1) “How does the level of (traditional) costing system sophistication affect the quality of decision-facilitating and decision-influencing information provided by costing systems in case of intended and unintended biases in input data?”. Hence, the main focus is on measures for costing system sophistication and how a variation in these measures affects the effects on the input biases under investigation. Parameterization of input biases is kept constant during all simulation runs. The main focus of the analyses is on whether or not the effects of the various types of input biases are sensitive to costing system sophistication. Section 5.1 gives the parameterization applied in order to investigate the research question and elaborates the method of data analysis. Sections 5.2 and 5.3 present the results of the simulation runs. Chapter 8 discusses the presented results.