Explicit cost dynamics : an alternative to activity-based costing / Reginald Tomas Yu-Lee.

Format:

Book

Author/Creator:

Yu-Lee, Reginald Tomas, 1964-

Series:

Wiley cost management series

[Wiley cost management series]

Language:

English

Subjects (All):

Direct costing.

Cost accounting.

Physical Description:

xvii, 220 pages : illustrations ; 24 cm.

Place of Publication:

New York : Wiley, [2001]

Contents:

Chapter 1 Limitations of Cost Accounting 1

Improving Profitability 2

Management Competence 6

Need to Account for Costs 6

Impact of Standard Costing on Operations 13

Activity-Based Costing 19

Need for Nonallocation Cost Management 21

Chapter 2 What is Explicit Cost Dynamics? 23

What Does the Name Explicit Cost Dynamics Mean? 23

Nonallocation Cost Management 27

Explicit Costs and Implicit Costs 36

Explicit Cost Dynamics Cost Definitions 41

Why is ECD Necessary? 43

Chapter 3 Understanding Explicit Cost Dynamics Costs 45

Cost Dynamics 45

Cost Types 49

Total Cost 56

Total Cost as a Multidimensional Function 57

Managing Total Cost 64

Objective of Cost Management 64

Costs Must Still Be Reduced 65

Chapter 4 Profit Dynamics 69

System Dynamics and Time 70

Explicit Profit Dynamics 76

Chapter 5 Basic Explicit Cost Dynamics Measures 91

Traditional Approach 92

Progressive Approach 93

Activity-Based Costing Approach 94

Who Is Right? 94

Allocation 95

Can the Unit Price Be Determined? 96

Objective of Cost Management 97

Explicit Cost Dynamics Measures 98

Cost Recovery Ratio 101

Program Margin 102

Answer to the Example Using the ECD Approach 104

Chapter 6 Degree of Freedom Management 107

Related Activities and Causal Relationships 108

Degree of Freedom Management 109

What Is a Degree of Freedom? 110

Creating and Destroying Degrees of Freedom 115

Coupled and Decoupled Decisions and Program Justification 119

Chapter 7 Operational Inconsistencies 123

Learning and Experience Curve 123

Economies of Scale 126

Optimum Order Quantities 131

Machine Utilization and Efficiency 135

Operation Balancing 139

Chapter 8 Resource and Program Management 143

Resource Costs 143

Resource Cost Dynamics 147

Program Costs 149

Program Types 149

Chapter 9 Practical Use 169

Time 169

Time and Operations Improvements 175

Addressing the Potential Danger of Transfer Costing 178

Product and Service Rationalization 181

Outsourcing and Make Versus Buy 182

Product Pricing Considerations Using CRR 185

Chapter 10 Implementing Explicit Cost Dynamics 191

Organization 191

Programs 195

Cost Management 200

Systems and Technologies 205

Ensuring a Successful Implementation 212.

Notes:

Series statement taken from book jacket.

Includes bibliographical references and index.

ISBN:

0471389439