The application of management accounting techniques to determine the financial viability of delivery routes in the bread industry: a case study

Abstract

Cost management is essential in every organisation, especially in an increasingly competitive environment (Jain & Yadav 2006:352). The management of distribution costs has become increasingly important because of the rising fuel costs in recent years (Gaffney 2008:40). Delivery routes should be optimised in order to reduce distribution costs. This article presents a comprehensive segment margin approach model for determining the financial viability of delivery routes. A specific bakery (henceforth referred to as Bakery A) was selected as a case study, and the use of general management accounting principles in determining the financial viability of delivery routes was specifically investigated.

Citation

Middelberg, S.L., van Rooyen, S. and Pienaar, A.J. (2009), "The application of management accounting techniques to determine the financial viability of delivery routes in the bread industry: a case study", Meditari Accountancy Research, Vol. 17 No. 1, pp. 33-47. https://doi.org/10.1108/10222529200900003