Activity-Based Cost Management: An Executive's Guide / Edition 1

Activity-Based Cost Management: An Executive's Guide / Edition 1

by Gary Cokins
     
 

ISBN-10: 047144328X

ISBN-13: 9780471443285

Pub. Date: 09/24/2001

Publisher: Wiley

Back when Henry Ford was producing Model Ts in one black, all-purpose model, traditional cost allocation gave a fairly accurate picture of a company's expenses. But today, the very nature of doing business has radically changed. Overhead expenses are displacing direct costs. And the complexity of most organizations has increased dramatically. Companies produce more

…  See more details below

Overview

Back when Henry Ford was producing Model Ts in one black, all-purpose model, traditional cost allocation gave a fairly accurate picture of a company's expenses. But today, the very nature of doing business has radically changed. Overhead expenses are displacing direct costs. And the complexity of most organizations has increased dramatically. Companies produce more products in greater variation and diversity than ever before, and they service more, and different, types of customers. Add to that the sea change created as the Internet spawns more e-trading market exchanges with auctions and bidding, and it becomes apparent that we need a method that replaces the fuzzy answers of traditional methods with credible assumptions based on valid data.

The answer is Activity-Based Cost Management, and this crystal-clear, persuasive, and authoritative book will help you understand and implement ABC/M quickly and easily.

Managerial accounting is now transitioning into managerial economics, reveals author Gary Cokins, a worldwide expert on activity-based cost management. With the technology we have at our disposal, ABC/M will provide you not only with a more accurate picture of your company's costs but also with the critical information you need to make better decisions and perform better and more in alignment with your company's defined strategy.

Cokins explains exactly why ABC/M is far superior than traditional costing for your needs in today's business environment, and how it will help you manage costs, increase profits, and make better decisions. You'll learn to use ABC/M to:

• Map the preferences of your prospects and customers back to your organization's business processes and cost structure

• Adopt an effective and more reliable method of estimating and budgeting for costs, price quotations, investment alternatives, and decisions

• Construct a fair "chargeback" billing system that reflects the true consumption of costs by your end users and service recipients

• Remove waste, redundancy, and unused capacity

• Develop a "lean" accounting system to match your new lean operations practices

• Finally measure the hidden costs of "non-quality" that is the focus of Six Sigma and other quality management philosophies

Now you can stop allocating resources and begin tracing and assigning them based on the real, measurable cause-and-effect relationships within your organization. Written in language as entertaining as it is accessible, Activity-Based Cost Management: An Executive's Guide gives you the tools you need to construct an efficient ABC/M model and use it to ensure your company's success.

Read More

Product Details

ISBN-13:
9780471443285
Publisher:
Wiley
Publication date:
09/24/2001
Series:
Wiley Cost Management Series, #8
Pages:
384
Sales rank:
539,742
Product dimensions:
6.30(w) x 9.20(h) x 3.90(d)

Table of Contents

Prefacevii
1Removing the Blindfold with ABC/M1
2A Management Accounting Framework: A Taxonomy32
3Are All Your Trading Partners "Worth It" to You?99
4The Internet, E-Commerce, Supply Chain Management, and Digital Economies: Where Does ABC/M Fit In?149
5The Holy Grail: Performance Measure Systems That Produce the Correct Behavior197
6Popular Uses of ABC/M226
7ABC/M Integrates with Other Software Tools279
8Predictive Costing, Predictive Accounting285
9Implementing ABC/M Through Rapid Prototyping325
10Common Misconceptions about ABC/M and Employee Buy-In345
11Stage Five Cost Systems: The Future of ABC/M352
Appendix360
Index368

Read More

Customer Reviews

Average Review:

Write a Review

and post it to your social network

     

Most Helpful Customer Reviews

See all customer reviews >