Garantie de satisfaction à 100% Disponible immédiatement après paiement En ligne et en PDF Tu n'es attaché à rien
logo-home
Recherché précédemment par vous
Recherché précédemment par vous
logo
Cost management samenvatting $6.71
Ajouter au panier
Accédez rapidement à
Aperçu
  2.  
  3. Technische Universiteit Eindhoven (TUE)
  4.  
  5. Financial accounting

Resume

Cost management samenvatting

4 revues
 35 fois vendu
  • Cours
  • Financial accounting
  • Établissement
  • Technische Universiteit Eindhoven (TUE)
  • Book
  • Cost Management

Zeer uitgebreide samenvatting van 79 pagina's, met uitleg van begrippen maar ook stukken tekst over de verbanden tussen de begrippen ondersteund door afbeeldingen uit het boek.

Dernier document publié: 10 année de cela

Aperçu 4 sur 79  pages

Infos sur le Document

  • Oui
  • 28 octobre 2014
  • 2 novembre 2014
  • 79
  • 2014/2015
  • Resume

Sujets

  • cost management
  • financial accounting
  • accounting
  • management

Livre connecté

book image

Titre de l’ouvrage:

Auteur(s):

  • Édition:
  • ISBN:
  • Édition:

École, étude et sujet

  • Technische Universiteit Eindhoven (TUE)
  • Technische Bedrijfskunde
  • Financial accounting
Tous les documents sur ce sujet (1)

4  revues

review-writer-avatar

Par: meneerzonderachternaam • 4 année de cela

review-writer-avatar

Par: thijsbuckers • 5 année de cela

Traduit par Google

Very complete summary, perfect for stomping (time efficiency) but boring to read.

review-writer-avatar

Par: aijiththanloganathan • 7 année de cela

review-writer-avatar

Par: tessakuiper1994 • 7 année de cela

Vendeur

avatar-seller
Manja58

Avis reçus

Aperçu du contenu

CHAPTER 1
Cost management: an organizational commitment, a professional attitude and a set of techniques to
create more value at lower cost.

Cost management system: the set of cost management techniques that function together to
support the organization’s goals and activities.

Decision-making Framework:

I. Setting goals and objectives

 Strategic decision making

 Selecting goals

 Specifying tangible objectives

II. Gathering information

 Generating feasible decision alternatives

 Measuring decision alternatives on various criteria

 Understanding activities and cost drivers

III. Evaluating alternatives

 Anticipating the future outcomes of each action

 Choosing the best alternatives

 Budgeting resources and activities, financial planning

IV. Execution and tracking costs

 Implementing the best alternative

 Accumulating actual cost and assigning them to products and services

V. Obtaining feedback

 Evaluating actual outcomes

 Setting transfer prices

 Measuring managerial financial performance

The objective of the decision-making framework is to reinforce that cost management is a
purposeful activity – more value creation at lower cost – and a proactive attitude – decisions drive
costs; costs do not just happen.
1

,Stage 1 is about setting goals and objectives. Most goals are abstract in nature.

Tangible objectives: benchmarks capable of being measured in some manner.

Criteria: the attributes on the basis of which the decision maker compares the decision alternatives
and makes a decision.

In stage 2 analysts collect information to understand the decision alternatives through which
organizational goals and objectives can be achieved.

Decision alternatives: the considered alternative courses of action about which a decision is made.

Organizations often identify alternatives by thoroughly seeking information from, among others:

 Employees, who know their work best.

 Customers, who can articulate their unmet needs and visions.

 Competitors, who are seeking the same competitive edge and made changes that the
organization can imitate or improve.

 Non-competitors, who use ‘best practices’ that might be transferrable.

 Universities, which seek to push beyond the boundaries of scientific, engineering and social
practices.

 Consultants, who observe best practices and can help adapt them to this organization.

 The Internet, which is a continually involving repository of vast and growing knowledge.

Financial criteria: a monetary unit of measurement (a currency). Ex: Acquisition price, material cost
and labor cost.

Non-financial criteria:

 Quantitative: a non-monetary but still quantitative unit of measurement. Ex: Delivery time,
production speed, process yield or size tolerances.

 Qualitative: expressed in words instead of numbers. Ex: Description of a supplier’s
innovative capabilities or testimonials from a supplier’s other costumers.

Financial quantification: translating a non-financial criterion into a financial criterion.

Information quality: the dimensions of which are decision usefulness, subjectivity, objectivity,
accuracy, timeliness, cost and relevance for current decisions. Managers need to find a balance for
the required information quality, because gathering information requires time and is costly.

Decision usefulness: the overriding consideration: does it help managers make sufficiently better
decisions to justify the cost of the information?


2

,Subjectivity: the degree of disagreement about what to measure, how to measure it, what the
observed measure is or whether the measurement is important.

Objectivity: the degree of consensus about measurement, is the mirror image of subjectivity.

Accuracy: precision in measurement.

Timeliness: information is available in time to fully consider it when making a decision.

Relevance: whether it is pertinent to a decision: that is, knowing the information or different values
of the information can influence choices. What information is relevant for the specific situation?

Relevant costs and benefits: occur in the future and differ for feasible alternatives. Costs that differ
for alternatives are also called differential costs.

Sunk costs: costs that are in the past and cannot be changed anymore are not relevant for decisions
making.

NB: Costs that are in the future and are the same for all decision alternatives will not influence the
comparison and are also not relevant for decision making.

Stage 3 focusses on evaluating the alternatives. Non-financial information is harder to factor then
financial information, unless it can be translated into financial information. But not everything that
matters can be made financial.

Stage 4 is to put the selected alternative into practice, and to keep track of the actual costs and
revenues.

Stage 5 is the final stage and is to obtain feedback. This means that the actual outcomes are
analyzed for improving future decisions and for holding managers accountable.

More about stage 1

Strategy: the overall plan or policy to achieve its goals. To develop a strategy managers answer two
basic questions:

 Where do we want to go?

 How do we want to get there?

Strategic decision making: determining the ‘where’ and ‘how’ by choosing and implementing
actions that will affect an organization’s future abilities to achieve its goals.

Where do we want to go?

Exhibit 1.2 shows four common types of strategic missions along the important dimensions of
reward and risk; build, hold, harvest, divest.




3

, Risks: the possible variations in incentives, which might turn out to be very high or very low.

Rewards (for profit seeking firms): financial incentives in the form of profits, cash flow and share
price appreciation. Ex of non-financial reward: improved social responsibility.

How do we get there?

Successful strategic decision-making involves choosing the destination and the best route to it. The
latter can be more successful when managers:

 Understand the sources and threats to competitive advantages.

 Use effective decision making techniques.

Competitive advantage: a resource, process or value chain that enables the organization to provide
more value, perhaps at lower costs than its competitors.

Process: a related set of tasks, manual or automated, that transforms inputs into identifiable
outputs.

Value chain: the relation of an organization’s processes that links ideas, resources suppliers and
customers; a competitive value chain does so in a superior way.

Exhibit 1.3 shows a generic value chain that links all major processes that most organizations
perform in some way.



4

Les avantages d'acheter des résumés chez Stuvia:

Qualité garantie par les avis des clients

Qualité garantie par les avis des clients

Les clients de Stuvia ont évalués plus de 700 000 résumés. C'est comme ça que vous savez que vous achetez les meilleurs documents.

L’achat facile et rapide

L’achat facile et rapide

Vous pouvez payer rapidement avec iDeal, carte de crédit ou Stuvia-crédit pour les résumés. Il n'y a pas d'adhésion nécessaire.

Focus sur l’essentiel

Focus sur l’essentiel

Vos camarades écrivent eux-mêmes les notes d’étude, c’est pourquoi les documents sont toujours fiables et à jour. Cela garantit que vous arrivez rapidement au coeur du matériel.

Foire aux questions

Qu'est-ce que j'obtiens en achetant ce document ?

Vous obtenez un PDF, disponible immédiatement après votre achat. Le document acheté est accessible à tout moment, n'importe où et indéfiniment via votre profil.

Garantie de remboursement : comment ça marche ?

Notre garantie de satisfaction garantit que vous trouverez toujours un document d'étude qui vous convient. Vous remplissez un formulaire et notre équipe du service client s'occupe du reste.

Auprès de qui est-ce que j'achète ce résumé ?

Stuvia est une place de marché. Alors, vous n'achetez donc pas ce document chez nous, mais auprès du vendeur Manja58. Stuvia facilite les paiements au vendeur.

Est-ce que j'aurai un abonnement?

Non, vous n'achetez ce résumé que pour $6.71. Vous n'êtes lié à rien après votre achat.

Peut-on faire confiance à Stuvia ?

4.6 étoiles sur Google & Trustpilot (+1000 avis)

65040 résumés ont été vendus ces 30 derniers jours

Fondée en 2010, la référence pour acheter des résumés depuis déjà 15 ans

Commencez à vendre!

Récemment vu par vous

Pack ·

(0)

Humane Wetenschappen

Resume ·

(0)

samenvatting micro economie

Resume ·

(0)

FA-BA106 gladde spier

Autre ·

(0)

Tax 2601 Assessment 5

Resume ·

(0)

Samenvatting Business & IT

Resume ·

(0)

Communication Summary

Examen ·

(0)

Walden University NURS 6660

Resume ·

(0)

anatomie samenvatting

Pack ·

(0)

Alle examenstof VWO!

$6.71  35x  vendu
  • (4)
Ajouter au panier
Ajouté