Evaluating Information Technology Investments: A Fuzzy Activity-Based Costing Approach

Abstract

This paper proposes a framework for evaluating information technology investments, integrating value chain analysis with activity-based costing and fuzzy logic. The proposed method should be particularly useful for businesses in emerging economies, where an uncertain economic environment is often combined with a lack of dependable, historical accounting data. The framework is illustrated by means of a hypothetical manufacturing company and a triangular fuzzy set membership function.

Keywords: activity-based costing, developing countries, emerging economies, fuzzy logic, value-chain analysis

JEL Classification: O00