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.