ISBN 9780875847887,Cost & Effect

Cost & Effect



Harvard Universal Press

Publication Year 1997

ISBN 9780875847887

ISBN-10 0875847889


Number of Pages 357 Pages
Language (English)
Two of the most innovative thinkers in the field present a work that represents the single best resource for understanding and implementing activity-based cost management. Kaplan and Cooper reveal that most companies don't know how to measure accurately, influence, or understand the fundamental cost drivers in their businesses. They then provide a detailed and comprehensive blueprint that will enable managers to make better decisions and to promote organizational learning and improvement. "Cost and Effect" takes the management, finance, and accounting fields to an entirely new level, as the authors demonstrate how the principles of activity-based costing and other advanced cost management techniques, such as target and kaizen costing, can drive business performance. Using lively examples from a variety of leading companies worldwide - including Siemens, Hewlett-Packard, AT&T, the Swedish wire manufacturer Kanthal, Kirin Beer, and Procter & Gamble - they show how to create integrated, knowledge-based systems that provide meaningful information on current and past performance. The innovation systems described in "Cost and Effect" will help you: determine where improvements in quality, efficiency, and productivity will have the highest payoffs; assist front-line employees in their learning and improvement activities; make better product mix and capital investment decisions; negotiate more effectively on price, product features, quality, delivery, and service to promote win-win relationships with your customers; choose low-cost suppliers who are truly low cost, not just low price; design products and services that meet customers' expectations - and that can be produced and delivered at a profit; and, integrate your activity-based cost system into reporting and budgeting processes to reveal the sources of excess capacity. Everyone involved in running a business - from general managers and strategic planners to financial executives, IT professionals, and operations managers - must read this book to learn how innovative cost and performance measurement systems can enhance their organizational profitability and performance. Robert S. Kaplan is the Marvin Bower Professor of Leadership Development at the Harvard Business School. He is the co-author of The Balanced Scorecard and Relevance Lost and the editor of Measure for Manufacturing Excellence (all, HBS Press). Robin Cooper is a professor of management and the director of the Institute for Study of U.S./Japan Relations in the World Economy at the Peter F. Drucker Graduate Management Center at Claremont Graduate School and the Honorary Visiting Professor of Strategic Cost Management at Manchester Business School. He is the author of When Lean Enterprises Collided (HBS Press). Kaplan and Cooper are the recognized leaders in developing the theory and applications for innovative cost-management systems. Table Of Contents Preface 1. Introduction: Cost and Performance Management Systems 2. Four-Stage Model for Designing Cost and Performance Measurement Systems 3. Stage II: Standard Cost and Flexible Budgeting Systems Appendix: GPK Cost System 4. Stage III Systems for Learning and Improvement: Upgrading and Supplementing Standard Cost Systems 5. Stage III Systems for Learning and Improvement: Kaizen Costing and Pseudo-Profit Centers 6. Activity-Based Costing: Introduction Appendix: ABC Activity and Process Dictionary 7. Measuring the Cost of Resource Capacity 8. Activity-Based Management: Operational Applications Appendix: Value and Non-Value-Added Activities 9. Strategic Activity-Based Management: Product Mix and Pricing 10. Strategic Activity-Based: Customers 11. Strategic Activity-Based Management: Supplier Relations and Product Development Appendix: Target Costing 12. ABC in Service Industries 13. Extending Activity-Based Cost Systems 14. Stage IV: Integrating ABC with Enterprise-Wide Systems 15. Stage IV: Using ABC for Budgeting and Transfer Pricing Notes Index About the Authors