The four-stage model of cost systems design
Article Abstract:
Executives of manufacturing firms want a single cost accounting system, but multiple cost systems are an intermediate, practical stage through which progress is made towards implementing an effective integrated management information system. Multiple costs systems, illustrated by a four-stage model, is a stage through which all companies must pass. The four-stage model of costs systems includes four levels of cost accounting systems: poor data quality; external reporting; innovation; and integration. Companies will progress through this matrix, arriving at a Stage Four system characterized by the integration of two managerial systems, one for customer profitability analysis and one for on-line feedback and performance measurement.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1990
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The rise and fall of management accounting
Article Abstract:
Modern management accounting (MA) systems can provide a misleading picture of corporate operations for management's attention and thus fail at helping to improve productivity. With increasing global competition, success depends not only on meeting customer needs and on efficient production, distribution, and marketing systems, but on excellence in MA systems. The best examples of effective MA systems are the railroad corporations of the mid-19th century. During the early 20th century, the final developments in MA systems occurred, the most important of which was the return-on-investment (ROI) measure. After 1920, there was not a parallel improvement in process or product technologies or in MA techniques and methodologies.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1987
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Activity-based information: a blueprint for world-class management accounting
Article Abstract:
Management accounting information which is activity-based is at the core of continually improving profitability. To be a world-class competitor requires creation of activity-based charge-out and production cost systems. Four steps to controlling waste in operating activities are described: charting activity flow on an organization-wide basis, finding customer value sources in every activity; cutting out an any activities that do not add some identifiable value to customers; finding the causes of delay, excess, and unevenness; and tracking waste indicators.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1988
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