Bala Balachandran
Bala Balachandran

Professor Emeritus of Accounting Information & Management

Print Overview

Bala Balachandran began his teaching career in 1960 while a graduate student at Annamalai University, India. In 1967 he moved to the University of Dayton and in 1971, to Carnegie-Mellon University, Pittsburgh, where he taught management courses while working on his doctorate. In 1973 he joined the Kellogg School of Management faculty. He was Chairman of the Department of Accounting Information and Management from 1979 - 1983. In 1984 he was appointed Professor of Accounting Information and Management and was Director of the Accounting Research Center from 1985-2006.

Professor Balachandran's teaching interests include managerial accounting, auditing, management information systems, and mathematical programming. He is one of three Kellogg faculty members who started the Information Resource Management Program (IRM) at Northwestern in 1974. He has authored more than 55 research articles and is currently writing a managerial accounting textbook with emphasis on cost management in an automated manufacturing environment. He is department editor in accounting for Management Science, associate editor for The Accounting Review and on the editorial boards of Contemporary Accounting Research, and the Journal of Accounting, Auditing and Finance.

Professor Balachandran's research deals with performance evaluation, cost management, audit planning, allocation models, and forecasting. His recent work includes auditors' legal liability and game theoretic cost allocation models with transfer pricing. His work has earned numerous scholastic honors, awards, and fellowships, and he serves as a consultant to senior management in industry, as well as to the U.S. Air Force, in the areas of accounting, forecasting, and strategic decision support systems. He has provided executive education for various companies and the government and is the program director for "Managing Cost Information for Effective Strategic Decisions," a three-day program conducted at the James L. Allen Center each year during the spring and fall.

Print Vita
PhD, 1973, Industrial Administration, Carnegie Mellon University
MS, 1963, Applied Statistics, Annamalai University
MA, 1961, Mathematics, Statistics, Annamalai University
BS, 1959, Mathematics, Statistics, Annamalai University

Academic Positions
Director, Kellogg School of Management, Northwestern University, 1985-present
J.L. Kellogg Distinguished Professor in Accounting, Information, and Management, Kellogg School of Management, Northwestern University, 1984-present
Professor of Accounting, Information Systems and Decision Sciences, Kellogg School of Management, Northwestern University, 1979-1979
Chairman and Professor of Accounting, Information Systems and Decision Sciences, Kellogg School of Management, Northwestern University, 1979-1983
Associate Professor of Decision Sciences, Kellogg School of Management, Northwestern University, 1973-1976
Assistant Professor, University of Dayton, 1971-1973
Assistant Professor of Industrial and Systems Engineering, University of Dayton, 1970-1971
Instructor, Industrial Engineering, University of Dayton, 1969-1970
Assistant Professor of Statistics/Mathematics, Department of Statistics, Annamalia University, 1960-1967

Honors and Awards
Kellogg Alumni Professor of the Year Award, Kellogg School of Management, 1997
Sidney J. Levy Teaching Award, Kellogg School of Management, 1996-1997

Print Research
Research Interests

Performance evaluation, cost management, audit planning, allocation models

Balachandran, Bala. 2007. The Customer Centricity Culture: Drivers For Sustainable Profitability. Journal of Cost Management. 21(6): 12-19.
Balachandran, Bala and Sudhakar Balachandran. 2005. Cost Culture Through Cost Maturity Model. Journal of Cost Management. 19: 15-27.
Balachandran, Bala and Shyam Sunder. 2003. Interface Between ABC/M Requirements and Multi-Dimensional Databases. Journal of Cost Management. 17(6): 33-39.
Balachandran, Bala, Hemang Desai, K. Ramesh and S.Ramu Thiagarajan. 2002. An Investigation of the Informational Role of Short Interest in the Nasdaq Market. Journal of Finance. 57(5): 2263-2287.
Balachandran, Bala and David Barter. 2002. Velocity Costing for A Manufacturing Environment. Journal of Cost Management. 16(1): 39-42.
Balachandran, Bala. 1999. Activity -Based Management for Systems Consulting Industry. Journal of Cost Management. 13(3)
Balachandran, Bala and Swapan K Chaudhuri. 1999. Growth Strategies Creating Shareholder Value. Indian Accounting Review. 3(1): 1-17.
Balachandran, Bala and Jonathan M Booth. 1999. Using ABM to Identify Value: An Automotive Retailer Case Study. Journal of Cost Management.: 4-10.
Balachandran, Bala and Nandu N. Thondavadi. 1999. What Can Go Wrong with ABC. Corporate Controller Journal. 11(6): 21-28.
Balachandran, Bala and Glen Navis. 1999. Volume Adjusted Costing: A Quick and Implementable Solution. Journal of Cost Management.: 5-10.
Sridharan, Swaminathan and Bala Balachandran. 1999. Choice of An Information Structure Versus A Production Environment: A Managerial Control Perspective. Journal of Accounting and Public Policy. 18(3): 193-227.
Balachandran, Bala and Nandu N. Thondavadi. 1998. What's Going Wrong with Activity-Based Costing?. Corporate Controller.
Balachandran, Bala and Ramji Balakrishnan. 1997. On the Efficiency of Cost-Based Rules for Capacity Planning. Accounting Review. 72(4): 21-25.
Sridharan, Swaminathan and Bala Balachandran. 1997. Incomplete Information, Task Assignment and Managerial Control Systems. Management Science. 43(6)
Balachandran, Bala and Swaminathan Sridharan. 1997. Structured Interdependencies and Managerial Control. Management Science. 42(3)
Balachandran, Bala, Ramji Balakrishnan and Konduru Sivaramakrishnan. 1997. Capacity Planning with Demand Uncertainty. Engineering Economist. 43(1): 49-72.
Balachandran, Bala. 1996. Joint Cost Allocation for Multiple Lots. Management Science. 42(2): 247-258.
Balachandran, Bala. 1995. Activity Based Cost Management for Improving Sustainable Profitability. Cost Management Insiders Report. 2(4): 5-8.
Balachandran, Bala. 1994. Strategic Activity Based Accounting. BusinessWeek.
Balachandran, Bala. 1993. Cost Drivers Optimization in Activity-Based Costing. Accounting Review. 68(3): 563-575.
Balachandran, Bala and Ramachandran Ramanan. 1993. Management Compensation Surrounding an Accounting Change and Long-Term Construction Projects. Contemporary Accounting Research. 10(1): 211-226.
Balachandran, Bala. 1993. Auditors' Legal Liability in the US. Journal of Economics and management Strategy. 2(3): 333-338.
Balachandran, Bala. 1993. Audit Services and Fees and Large Accounting Firms. Journal of Economics and management Strategy. 2(3): 339-348.
Dye, Ronald A.Bala Balachandran and Robert Magee. 1990. Contingent Fees for Audit Firms. Journal of Accounting Research. 28(2): 239-266.
Balachandran, Bala. 1989. Operational Matrix Accounting. Contemporary Accounting Research. 5(2): 775-792.
Balachandran, Bala and Ramachandran Ramanan. 1988. Optimal Internal Control Under Dynamic Conditions. Journal of Accounting Auditing and Finance. 3(1): 1-18.
Magee, Robert and Bala Balachandran. 1987. On the Allocation of Fixed and Variable Costs from Service Departments. Contemporary Accounting Research. 4(1): 164-185.
Balachandran, Bala. 1987. Imperfect Information, Insurance and Auditor's Legal Liability. Journal of Contemporary Account Research. 3(2): 281-301.
Balachandran, Bala. 1987. Cost Management with Cost Accounting.
Balachandran, Bala. 1987. A Theory of Audit Partnership: Audit Firm Size and Fees. Journal of Accounting Research. 25(1): 111-126.
Balachandran, Bala. 1986. Threshold Margins for Creating Economic Value. Journal of Financial Management. 15(1)
Balachandran, Bala. 1986. Discussion of an Analysis of the Auditor's Uncertainty about Probabilities. Contemporary Accounting Research. 2(2): 283-287.
Balachandran, Bala. 1985. Chargeback Can be Purposeful: Live and Let Live is the Goal.
Balachandran, Bala. 1984. Planning and Control Systems for R&D Organizations.: 133-153.
Balachandran, Bala. 1981. A Mathematical Programming Model for Optimal Service Selection in the Airline Industry. European Journal of Operational Research. 8(4): 324-334.
Balachandran, Bala. 1981. Joint Cost Allocation: A Unified Approach. Accounting Review. 56(1): 85-95.
Balachandran, Bala and Andris Zoltners. 1981. An Interactive Audit-Staff Scheduling Decision Support System. Accounting Review. 56(4): 801-812.
Balachandran, Bala. 1980. Internal Control and External Auditing for Incentive Compensation Schedules. Journal of Accounting Research. 18(Supplement): 140-171.
Balachandran, Bala. 1980. Auditing for Compensation Schedules - A Reply. Journal of Accounting Research. 18(Supplement): 182-183.
Balachandran, Bala. 1979. The Stochastic Generalized Transportation Network - An Operator Theoretic Approach. International Journal of Networks. 9: 169-184.
Balachandran, Bala. 1978. Cost Allocation for Maximizing Hospital Reimbursement Under Third Party Cost Contracts. Health Care Management Review. 3(2): 61-71.
Balachandran, Bala. 1976. Transportation Type Models with Quantity Discounts. Naval Research Logistics Quarterly. 23(2): 195-209.
Balachandran, Bala. 1976. Management of Program Storage in Computers. Management Science. 23(4): 380-390.
Balachandran, Bala. 1976. An Integer Generalized Transportation Model for Optimal Job Assignment in Computer Networks. Operations Research. 24(4): 742-759.
Balachandran, Bala and Sudhakar D. Deshmukh. 1976. Storage Decisions in Information Systems. AIEE Transactions. 8(3)
Balachandran, Bala. 1976. Optimal Facility Location Under Random Demand with General Cost Structure. Naval Research Logistics Quarterly. 23(3): 421-436.
Balachandran, Bala and Sudhakar D. Deshmukh. 1976. A Stochastic Model of Persuasive Communication. Management Science. 22(8): 829-840.
Kotler, Philip and Bala Balachandran. 1975. Strategic Remarketing: The Preferred Response to Shortages and Inflation. Sloan Management Review. 17(1): 1-17.
Balachandran, Bala. 1975. An operator theory of parametric programming for the generalized transportation problem: I. Basic theory. Naval Research Logistics Quarterly. 22(1): 79-100.
Balachandran, Bala. 1975. Solving the 'Marketing Mix' Problem Using Geometric Programming. Management Science. 21(2): 161-171.
Balachandran, Bala. 1975. An operator theory of parametric programming for the generalized transportation problem: II Rim, cost and bound operators. Naval Research Logistics Quarterly. 22(1): 101-126.
Balachandran, Bala. 1975. Optimal Production Growth for the Machine Loading Problem. Naval Research Logistics Quarterly. 22(3): 593-607.
Balachandran, Bala. 1975. An operator theory of parametric programming for the generalized transportation problem-IV-global operators. Naval Research Logistics Quarterly. 22(2): 317-339.
Balachandran, Bala. 1975. A Comment on "Solving the Marketing Mix Problem in Computer Networks. Management Science. 21(10): 1204-1205.
Balachandran, Bala. 1975. An operator theory of parametric programming for the generalized transportation problem-III-weight operators. Naval Research Logistics Quarterly. 22(2): 297-316.
Balachandran, Bala. 1974. Cost Evaluation of Storage Schemes. Proceedings of ACM.
Balachandran, Bala. 1972. Reliability Design for Airborne Ecological Systems. Annals of Assurance Sciences.: 393-399.
Balachandran, Bala. 1971. System Effectiveness Simulation Model with Non-Parametric Dependability. AIIE Transactions. 3(3): 221-228.
Balachandran, Bala. 1971. A Computerized Approach to Simulating System Effectiveness. Annals of Assurance Sciences. 4: 245-253.
Balachandran, Bala. 1971. Non-Parametric vs. Exponential Reliability in Simulating System Effectiveness. Annals of Assurance Sciences. 10
Balachandran, Bala. 1964. A Note on the Regression Model for Characteristics of Higher Secondary Students. AU Science Journal. 36
Balachandran, Bala. 1963. The Government of India Prize Bond Scheme - Statistical Study. Science Journal. 29
Working Papers
Sridharan, Swaminathan and Bala Balachandran. 2012. When Is Ignorance Blissful?.
Balachandran, Bala, Ramji Balakrishnan and Konduru Sivaramakrishnan. 2007. On the Relevance of Product Life Cycle for Cost-Based Pricing.
Sridharan, Swaminathan and Bala Balachandran. 2018. Efficiency-Promoting Aggregate Disclosures and Multiple Layers of Information Asymmetry.
Book Chapters
Agbadudu, Amorosu B and Bala Balachandran. 1998. "Multiple Working Bases for Generalized and Variable Upper Bounding Linear Programs." In Operations Research Methods, Models, and Applications, edited by Jay E. Aronson, Stanley Zionts, 29-48. Westport, Connecticut: Quorum Books.
Balachandran, Bala and Thomas R. Prince. 1987. "An Information System for Administering Welfare Programs." In Research in Governmental and Nonprofit Accounting, edited by James L. Chan, Greenwich, CT: JAI Press.
Balachandran, Bala. 1977. "Losung des Marketing-Mix Problems mit Hilfe der Geometrische Programmieuring." In Entscheidungshilfen in Marketing, 448-466. Stuttgar, W Germany: CE Poeschel Publishing.
Balachandran, Bala. 1977. "Kommentar Zu, Losung des Marketing-Mix-Problems mit Hilfe der Geometrischen Programmierung." In Entscheidungshilfen in Marketing, 467-495. Stuttgar, W Germany: CE Poeschel Publishing.
Balachandran, Bala. 1973. "Models of the Job Allocation Problem in Computer Networks." In Proceedings of COMPCON 73.
Balachandran, Bala. "Statistical Investigation of Amplitude Fluctuations Detected on Carrier Signals Propagated at 9-7 GHz and 69 GHz (AFAL-TR-170)." July.
Balachandran, Bala. 1999. Business Process Reengineering - Its History, Promises, and Problems. Morristown, NJ: Financial Executive Research Foundation, Inc..

Print Teaching
Teaching Interests

Managerial accounting, auditing, management information systems, mathematical programs