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A325 Cost Accounting

A325 Cost Accounting. August 22, 2012. What we will do today. Introduce the course and ourselves Go over the syllabus Have an abbreviated discussion of chapters 1 and 2. Get started with Chapter 3. Syllabus. Syllabus - materials. Cost Management: A strategic emphasis

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A325 Cost Accounting

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  1. A325Cost Accounting August 22, 2012 A325 - Reed Smith

  2. What we will do today • Introduce the course and ourselves • Go over the syllabus • Have an abbreviated discussion of chapters 1 and 2. • Get started with Chapter 3 A325 - Reed Smith

  3. Syllabus A325 - Reed Smith

  4. Syllabus - materials Cost Management: A strategic emphasis Blocher, Chen, Cokins, and Lin (5ed) A325 - Reed Smith

  5. Syllabus - the way things work • Regular updates/modifications to they syllabus will be on ONCOURSE • YOU ARE RESPONSIBLE FOR THESE A325 - Reed Smith

  6. Syllabus A325 - Reed Smith

  7. A little about me… Reed Smith Accounting (BS, MAcc Tennessee) (PhD, Ohio State) (Faculty: Texas, Oregon, SUNY-Buffalo, Indiana University) e-mail: jrsmith2@iupui.edu I am a big college football enthusiast. I also like to sail and swim. I play a little guitar, but I’m not that good anymore. I spent the Summer in Croatia doing research with the Economics Institute of Zagreb. I also just bought a house and have been moving in for the past few weeks. A325 - Reed Smith

  8. Four Functions of Management Strategicmanagement Planning anddecision making Management and operational control Preparation offinancial statements A325 - Reed Smith

  9. Strategic cost management is the development of cost management information to facilitate the principal management function, strategic management Strategic Cost Management A325 - Reed Smith

  10. Strategic Management Strategic management requires: • Anticipating changes • Understanding the business andcompetitive environment • Ability to make changes quickly • Ability to identify and solve problemsfrom a cross-functional view A325 - Reed Smith

  11. Wholesalers Retailers Types of Organizations Merchandisers Manufacturers Servicefirms Government and Not-for-profit A325 - Reed Smith

  12. Changes in Business Environment • Increase in global competition • Advances in manufacturing technologies • Advances in information technologies • Greater focus on the customer • New forms of management organization • Social, political, and cultural changes A325 - Reed Smith

  13. Target Costing Identify product opportunity. Determine price that wouldmake product competitive. Determine if product can be made at cost sufficiently low to provide a desired profit. A325 - Reed Smith

  14. The Value Chain • The value chain is an analysis tool firms use to identify the specific steps required to provide a product or service to the customer • An analysis of the firm’s value chain helps management discover: • which steps or activities are not competitive • where costs can be reduced • which activity should be outsourced A325 - Reed Smith

  15. The Balanced Scorecard The balanced scorecard is an accounting report that includes the firm’s critical success factors in four areas: • Financial performance • Customer satisfaction • Internal business processes • Innovation and learning A325 - Reed Smith

  16. The Balanced Scorecard Learning improvesbusiness processes. Improved businessprocesses improvecustomer satisfaction. Improving customersatisfaction improvesfinancial results. A325 - Reed Smith

  17. Strategic Positioning Firms arrive at one of two competitive strategies: • Cost leadership is a competitive strategy in which a firm succeeds in producing products or services at the lowest cost in the industry • Differentiation is a competitive strategy in which a firm succeeds by developing and maintaining a unique value for the product as perceived by consumers A325 - Reed Smith

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