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Activity-Based Cost Management: An Executive's Guide

Activity-Based Cost Management: An Executive's Guide

Gary Cokins

ISBN: 978-0-471-21727-5

Apr 2002

384 pages



Proven strategy for reducing production and operating costs while increasing profits

As the growth of the Internet shifts power to consumers, the pressure on companies to keep prices low will continue to mount. Increasingly corporations are relying on ""margin management"" and supply chain management as a means of keeping prices low while raising profits. Activity-based costing and management (ABC/M) data is key to succeeding in both these critical management strategies. This book explains how executives can effectively use the information furnished by cutting-edge ABC/M systems. The author, an acknowledged expert in the field, clearly defines the ABC/M system and explains how to use the information it provides for best results. He provides a rational framework for understanding the fifteen key defining characteristics of ABC/M and arms readers with an ABC/M Readiness Assessment test along with extremely user-friendly exhibits.

Preface vii

1 Removing the Blindfold with ABC/M 1

2 A Management Accounting Framework: A Taxonomy 32

3 Are All Your Trading Partners “Worth It” to You? 99

4 The Internet, E-Commerce, Supply Chain Management, and Digital Economies: Where Does ABC/M Fit In? 149

5 The Holy Grail: Performance Measure Systems That Produce the Correct Behavior 197

6 Popular Uses of ABC/M 226

7 ABC/M Integrates with Other Software Tools 279

8 Predictive Costing, Predictive Accounting 285

9 Implementing ABC/M Through Rapid Prototyping 325

10 Common Misconceptions about ABC/M and Employee Buy-In 345

11 Stage Five Cost Systems: The Future of ABC/M 352

Appendix 360

Index 368

""IIE member and seminar instructor Gray Cokins adds a new book to his list of accomplishments."" (IEE Solutions - Book of the Month 1/02)