The winners of the American Accounting Association’s “Greatest Potential Impact on Practice Award” for research in management accounting are Eva Labro, associate professor of accounting at the University of North Carolina’s Kenan-Flagler Business School, and Eddy Cardinaels, professor of accounting at the University of Tilburg, the Netherlands.
Labro and Cardinaels received the award for their paper “On the Determinants of Measurement Error in Time-Driven Costing,” which the Accounting Review published. Their research on time-driven, activity-based costing (TDABC) – a widely used method for costing products and services – translated directly into actionable recommendations for reducing errors in estimates used in TDABC models.
“With many organizations relying on time estimations in their cost allocations, Cardinaels’ and Labro’s work gives decision makers valuable insight on how to reduce flaws in these calculations to create better costing models,” said Carol Scott, American Institute of Certified Public Accountants (AICPA), vice president, business, industry and government.
Created in 2009, the award supports the next generation of management accounting researchers and recognizes the importance of research to practice and the profession. Sponsored by the AICPA, Chartered Institute of Management Accountants and Society of Management Accountants of Canada, it recognizes academic papers that are considered the most likely to have a significant impact on management accounting practice.
The professors received the award at the 2011 American Accounting Association Management Accounting Section’s mid-year meeting in Atlanta.