A Management Accounting Framework

SUMMER 2001 A Management explanation Framework By Gary Cokins Gary Cokins is theater director of Industry Relations for ABC Technologies, Inc., in Beaverton, Oregon. His e-mail deal out is garyfarms@aol.com Todays prudence accounting information, driven by the procedures and cycle of the faces financial reporting system, is in addition late, besides aggregated, and too distorted to be relevant for managers training and control decisions. H. doubting Thomas Johnson and Robert S. Kaplan, Relevance Lost: The Rise and drop-off of Management Accounting (Boston, MA: Harvard Business School Press, 1987), p.1)] We do not sack out a truth without knowing its cause. Aristotle, Nicomachean Ethics, confine I, chapter 1 [4-back] Increasingly, organizations need to understand their greets and what drives those costs. Yet many an another(prenominal)(prenominal) be woolly-headed about costs, especially in conflagrate of the many competing cost measurement methodologies, such a s the surmisal of constraints (TOC), activity-based costing (ABC), threadb ar costing, throughput accounting, and target costing. Another source of disarray arises from the custom search published by various professed(prenominal) groups. As a result, managers and employees are often confused: They are confronted with too many solutions. The attend may not be selecting the correct choice but, instead, a blend.

Various costing methods do not necessarily argue; they apprize be accommodate and combined, because they all measure the breathing in of economic resources. Who speaks for the managers in an organization that so many consultant s and academics presumably serve? Managers d! o not urgency confusion. Instead, they want inviolable support and factual selective information to help them pay off better decisions. They also want to know, for certain(p) types of decisions, what assumptions they should make about the inclusion body or exclusion of specific costs, and whether certain costs can be presumed to behave as variable or obdurate relative to changes in other factors. There is thus a need for an overarching framework to...If you want to get a beneficial essay, order it on our website: BestEssayCheap.com

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