New costing procedures for a new economic age Increasing global competition is causing upheaval in every areaof industry and commerce. An explosion in the use of advancedtechnologies is continuing to fundamentally revolutionize the waywe go about doing business. These factors are in turn drivingdramatic reductions in product life cycles (the average productlife cycle is now well under five years) and exerting tremendouspressure on profit margins. The effect has been to substantiallychange cost structures with their traditional focus on direct laborand arbitrary allocation of overhead. Yet we continue to measurecost in the old way. Now, here’s a book that shows you how to update your accountingprocedures in order to effectively accommodate these significantchanges. Step by step, Activity Accounting: An Activity-BasedCosting Approach describes activity accounting in a clear, concisemanner. It emphasizes the strengths and benefits of anactivity-based approach to business management and demonstrates howyou can apply activity accounting to your organization. Activity-based accounting is an essential tool for running yourbusiness in the 90s. This book is a must-have tool for learning howto master it.
Book Details:
- Author: James A. Brimson
- ISBN: 9780470256558
- Year Published: 1991
- Pages: 214
- BISAC: BUS001000, BUSINESS & ECONOMICS/Accounting / General
About the Book and Topic:
New costing procedures for a new economic age Increasing global competition is causing upheaval in every areaof industry and commerce. An explosion in the use of advancedtechnologies is continuing to fundamentally revolutionize the waywe go about doing business. These factors are in turn drivingdramatic reductions in product life cycles (the average productlife cycle is now well under five years) and exerting tremendouspressure on profit margins. The effect has been to substantiallychange cost structures with their traditional focus on direct laborand arbitrary allocation of overhead. Yet we continue to measurecost in the old way. Now, here’s a book that shows you how to update your accountingprocedures in order to effectively accommodate these significantchanges. Step by step, Activity Accounting: An Activity-BasedCosting Approach describes activity accounting in a clear, concisemanner. It emphasizes the strengths and benefits of anactivity-based approach to business management and demonstrates howyou can apply activity accounting to your organization. Activity-based accounting is an essential tool for running yourbusiness in the 90s. This book is a must-have tool for learning howto master it.
Traditionally, cost accounting systems have been reliable in reporting the total resources employed by each unit of an organization, but less reliable in measuring its efficiency and productivity. In these cost-conscious, untraditional times, its become more important than ever to identify the activities performed in an organization and determine their individual cost and performance effectiveness.
Shows the differences between traditional and activity cost accounting. Provides the key components of an activity accounting system. Shows how to calculate an activity cost. Provides practical problem-solving capabilities of activity accounting in case studies.
About the Author
JAMES A. BRIMSON is the founder of ABM Institute and a recognized leader in cost management.