n Meditari : Research Journal of the School of Accounting Sciences - The application of management accounting techniques to determine the financial viability of delivery routes in the bread industry : a case study




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.


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