Cost management system: An operational overview

Managerial Finance

Volumn 24, Issue 1, 1998, Pages 60-78

  Agrawal, Surendra P ^a   Mehra, Satish ^b  

^a UNIVERSITY OF MEMPHIS   (United States)

^b Mommouth University   (United States)

Author keywords

Activity based costing; BPR; Commitment; Competitive advantage; Cost management; Just in time; Kaizen; Participation; TQM

Indexed keywords

EID: 33846253867     PISSN: 03074358     EISSN: 17587743     Source Type: Journal    
DOI: 10.1108/03074359810765336     Document Type: Article

References (68)

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6. Development of ABC in the U.S. received considerable impetus from services of articles published by R. Cooper in Journal of Cost Management, “The Rise of Activity-Based Costing-Part One: What is an Activity-Based Cost System?'" (Summer 1988, pp. 45-54)
7. “The Rise of Activity-Based Costing-Part Two: When Do I Need an Activity-Based Cost System?'" (Fall 1988, pp. 41-48)
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11. See Glossary.
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13. See: R. Cooper and R. S. Kaplan, “Activity-Based Systems: Measuring the Cost of Resource Usage,” Accounting Horizons, September 1992, pp. 1-13.
14. P. F. Drucker, “We Need to Measure, Not Count,” The Wall Street Journal, April 13, 1993.
15. For example, see: J. W. May and R. B. Sweeney, “Activity-Based Costing in Banking: A Case Study,” CMA Magazine, May 1994, pp. 19-23.
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19. A list of warning signals that may point toward the need of ABC is provided by R. Cooper, “You Need a New Cost System When Harvard Business Review, January-February 1989, pp. 77-82.
20. However, there are many who disagree with this view. For example, See: G. Boer, “Five Modern Management Accounting Myths,” Management Accounting, January 1994, pp. 22-27.
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31. Experience has indicated that about 80 percent of the benefits of going to a completely integrated factory can be achieved simply by implementing JIT manufacturing. See: S. M. Hronec, “The Effects of Manufacturing Productivity on Cost Accounting and Management Reporting,” Cost Accounting for the 90s, pp. 117-125.
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34. This brief discussion is based on E. M. Goldratt and R. E. Fox, The Race, North River Press, Inc., 1986.
35. For a survey of the authoritative literature on TQM, see: J. K. Shank and V. Govindarajan, “Measuring the ‘Cost of Quality’: A Strategic Cost Management Perspective,” Journal of Cost Management Summer 1994, pp. 5-17.
36. For example, see: L. Carr and T. Tyson, “Planning Quality Cost Expenditures,” Management Accounting, October 1992, pp. 52-56.
37. Several methods have been suggested in the literature to estimate such hidden costs: the multiplier method, the market research method, and the Taguchi quality loss function. See: T. L. Albright and P. R. Roth, “The Measurement of Quality Costs:An Alternative Paradigm,” Accounting Horizons, June 1992, pp. 15-27.
38. See: J. Campanella (editor), Principles of Quality Costs, ASQC Quality Press, Milwaukee, 1990.
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64. See: American Productivity and Quality Center, The Benchmarking Management Guide, Productivity Press, Portland, 1993
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68. Several approaches are available to educate and train suppliers and custoerms. For futher details, see Schönberger. 1982.