Description
Book Synopsis
The new manufacturing environment requires new cost-accounting systems as well as new technology. While some authorities have advocated installing new and untried systems, the authors of this book recommend updating the standard cost system which 85 percent of manufacturing firms have in place. Updating the present system can achieve greater benefits in terms of providing information to managers for decision making. It also allows the organization to avoid disruption to the corporate culture and the cost associated with a new system. The authors show how standard cost systems can be redesigned to measure factors recognized to be important in today's manufacturing environment such as quality, production levels, and throughput. They demonstrate how standard cost systems can foster continuous improvement through dynamic rather than static standards.
After examining characteristics of the new manufacturing environment and benefits of upgrading the cost system, ways to
Table of Contents
Coping with the New Manufacturing Environment Tailoring Cost Accounting Systems to the New Manufacturing Environment Benefits of Updating vs. Installing a New Cost System The Traditional Standard Cost System Measuring the Right Variables: Updating Variance Reporting Measuring the Right Variables: Performance Measures Identifying Cost Drivers Providing for Continuous Improvement Integration of the Organization's Information Systems Evaluating and Updating Information Systems Evaluating Automation Proposals in the New Technology Environment Justifying Automation Proposals
