Management Accounting Cost Analysis Summary

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------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Summary * Subject: MAC-4 * Course: IBMS – 1 Dear mate, This summary provides you with a general overview of the theory covered in MAC-4. It is based on the “Cost Accounting” book by C. Horngren (Pierson International Edition, 13th Ed.). It is NOT a substitution of the book, but may be used as a complementary to it. For success on the exam, we advise you to…show more content…
* Strategic cost management – focuses specifically on the cost dimension within the overall strategy * Value chain – it is the sequence of business functions in which customer usefulness is added to products or services. There are six business functions: R&D, design, production, marketing, distribution, and customer service: * Supply chain – describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to consumers, regardless of whether those activities occur in the same organization or in other organizations. * Key success factors: * Cost and efficiency – companies face continuous pressure to reduce the cost of the products or services they sell. * Quality – customers expect high levels of quality. Total quality management (TQM) is a philosophy in which management improves operations throughout the value chain to deliver products and services that exceed customer expectations. * Time – new-product development time is the time it takes for new products to be created and brought to market. * Innovation – a constant flow of innovative products or services is the basis for on-going company success. * Five-step decision making process: 1. Identify the problem and uncertainties 2. Obtain information 3. Make predictions about the future 4. Make decisions by
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