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Ebook Cost management - Accounting amp; control (6th edition): Part 2

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Nội dung chi tiết: Ebook Cost management - Accounting amp; control (6th edition): Part 2

Ebook Cost management - Accounting amp; control (6th edition): Part 2

AdvancedCosting andControlChapters11Strategic Cost Management12Activity Based Management13The Balanced Scorecard: Strategic-Based Control14Quality and

Ebook Cost management - Accounting amp; control (6th edition): Part 2d Environmental Cost Management15Productivity Measurement and Control16Lean AccountingStrategic Cost Management<5 liruayt-Sourc •v'Ciwily IriiMMMaAFTE

R STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO:1Lxplain what strategic cost management is and how it can be used to help a firm create a competitive a Ebook Cost management - Accounting amp; control (6th edition): Part 2

dvantage.2Discuss value chain analysis and the strategic role of activity-based customer and supplier costing.3Tell what life-cycle cost management is

Ebook Cost management - Accounting amp; control (6th edition): Part 2

and how it can be used to maximize profits over a product's life cycle.4Identify the basic features of JI I purchasing and manufacturing.5Describe th

AdvancedCosting andControlChapters11Strategic Cost Management12Activity Based Management13The Balanced Scorecard: Strategic-Based Control14Quality and

Ebook Cost management - Accounting amp; control (6th edition): Part 2ate decision by an ice cream producer to design and make an ice cream product that uses special ingredients and flavors rather than simply the ordinar

y. It is a means of differentiating the product and making it unlike those of competitors. It also may mean a conscious decision has been made to targ Ebook Cost management - Accounting amp; control (6th edition): Part 2

et certain types of consumers—consumers who arc willing to pay tor a higher quality, specialized ice cream. Whether this is a good strategy or not dep

Ebook Cost management - Accounting amp; control (6th edition): Part 2

ends on its profitability. Cost management plays a vital role in strategic decision making. Cost information is critical in formulating and choosing s

AdvancedCosting andControlChapters11Strategic Cost Management12Activity Based Management13The Balanced Scorecard: Strategic-Based Control14Quality and

Ebook Cost management - Accounting amp; control (6th edition): Part 2were introduced, These concepts were illustrated using the traditional product cost definition. Activity-based product costing can significantly impro

ve the accuracy of traditional product costs. Thus,376Chapter 11 Strategic Cost Managementinventory valuation is improved, and managers (and other inf Ebook Cost management - Accounting amp; control (6th edition): Part 2

ormation users) have better information concerning the costs of products leading to more informed decision making. Yet the value of the traditional pr

Ebook Cost management - Accounting amp; control (6th edition): Part 2

oduct cost definition is limited and may not be very useful in certain decision contexts. For example, corporations engage in decision making that aff

AdvancedCosting andControlChapters11Strategic Cost Management12Activity Based Management13The Balanced Scorecard: Strategic-Based Control14Quality and

Ebook Cost management - Accounting amp; control (6th edition): Part 2 that provided by product costs. Cost information about customers, suppliers, and different product designs is also needed to support strategic manage

ment objectives.This broader set of information should satisfy' two requirements. First, it should include information about the firm's environment an Ebook Cost management - Accounting amp; control (6th edition): Part 2

d internal workings. Second, it must Ik pro spcctivc and dtus should provide insight about future periods and activities. A value chain framework with

Ebook Cost management - Accounting amp; control (6th edition): Part 2

cost data to support a value chain analysis satisfies the first requirement. Cost information to support product life-cycle analysis is needed to sat

AdvancedCosting andControlChapters11Strategic Cost Management12Activity Based Management13The Balanced Scorecard: Strategic-Based Control14Quality and

Ebook Cost management - Accounting amp; control (6th edition): Part 2on. Just-in-time (JIT) manufacturing is an example of a strategic approach that alters the nature of the cost accounting system. In this chapter, we i

ntroduce strategic cost management, life-cycle cost management, and JIT manufacturing. The JIT approach is used to illustrate the value chain concepts Ebook Cost management - Accounting amp; control (6th edition): Part 2

.STRATEGIC COST MANAGEMENT:BASIC CONCEPTSDecision making that affects the long-term competitive position of a firm must explicitly consider the strate

Ebook Cost management - Accounting amp; control (6th edition): Part 2

gic elements of a decision. The most important strategic elements for a tint! .ire its long term grow til and survival. Tints, strategic decision maki

AdvancedCosting andControlChapters11Strategic Cost Management12Activity Based Management13The Balanced Scorecard: Strategic-Based Control14Quality and

Ebook Cost management - Accounting amp; control (6th edition): Part 2f long term growth and survival. The key to achieving this goal is to gain a competitive advantage. Sơategic cost management is the use of cost data t

o develop and identify' superior strategics that will produce a sustainable compel!live advantage.Strategic Positioning: The Key to Creating and Susta Ebook Cost management - Accounting amp; control (6th edition): Part 2

ining a Competitive AdvantageCompetitive advantage is creating better customer value for the same or lower cost than offered by competitors or creatin

Ebook Cost management - Accounting amp; control (6th edition): Part 2

g equivalent or better value for lower cost than offered by competitors. Customer value is the difference between what a customer receives (cus turner

AdvancedCosting andControlChapters11Strategic Cost Management12Activity Based Management13The Balanced Scorecard: Strategic-Based Control14Quality and

Ebook Cost management - Accounting amp; control (6th edition): Part 2d by a product.' What is received is called the total product. The total product is die complete range of tangible and intangible benefits that a cust

omer receives from a purchased product. Thus, cus tomcr realization includes basic and special product features, service, quality, instructions for us Ebook Cost management - Accounting amp; control (6th edition): Part 2

e, reputation, brand name, and any other factors deemed important by customers. Customer sacrifice includes the cost of purchasing the product, the ti

Ebook Cost management - Accounting amp; control (6th edition): Part 2

me and effort spent acquiring and learning IO use the product, and postpurchase costs, which arc the costs of using, maintaining, and disposing of the

AdvancedCosting andControlChapters11Strategic Cost Management12Activity Based Management13The Balanced Scorecard: Strategic-Based Control14Quality and

Ebook Cost management - Accounting amp; control (6th edition): Part 2been identified: cost leadership, product diffcrrnnattoH, and focust»tf.!Cost LeadershipThe objective of a cost leadership strategy is to provide the

same or better value to customers at a lower cost than offered by competitors. Essentially, if customer value is defined as the difference between rea Ebook Cost management - Accounting amp; control (6th edition): Part 2

lization and sacrifice, a low-cost strategy increases customer1Keep in niuxi thu our defamoa 0t*pr«f«i7 indudes services. Service* ire mungiMe product

Ebook Cost management - Accounting amp; control (6th edition): Part 2

s.2Sec M. E. Porter, Chv/wWh .WiviUiV. CnđtíKỊỉ an.i StiaaiuiHỊ) Suftnor l'

AdvancedCosting andControlChapters11Strategic Cost Management12Activity Based Management13The Balanced Scorecard: Strategic-Based Control14Quality and

AdvancedCosting andControlChapters11Strategic Cost Management12Activity Based Management13The Balanced Scorecard: Strategic-Based Control14Quality and

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