This paper examines the implementation of an integrated Activity-Based Costing and Economic Value Added system, using a database approach. The proposed database approach allows the creation of a costing and performance measure system which provides decision-makers with up-to-date, complete, and reliable cost information. The steps for designing and implementing this integrated information system are illustrated with data from a real company. The advantages for calculating product cost information are investigated when a database is used to collect, store, retrieve, and analyze data. Improvements in quality of product cost information, resulting from this proposed methodology, are presented. Finally, the impact of this integrated information system on a company’s decision-making and long-term business performance is discussed.

Activity-Based Costing, Costing System, Decision Support Systems, Economic Value Added, Information System, Management Information System