Strategic Cost Fundamentals

An accessible, practical survey of cost management methods Essentials of Cost Management provides an unbiased survey and explanation of the cost management approaches and methods currently available for immediate application in day-to-day activities. Rather than advocate a particular method, this book assists readers in choosing the best approach or blend of cost management strategies to address specific business problems. The expert authors also discuss cutting-edge topics such as target costing, capacity management, and activity-based costing/management.

This book is designed to introduce designers, engineers, technologists, estimators, project managers, and financial analysts as well as students in engineering and business to strategic cost tools for project cost evaluations. The three main sections are as follows. (1) Cost Relationships, Financial Statements, and Performance Measures—This section describes the relationships between cash flows and profits; the relationships between financial statements and the Purcell Diagram; and the issues of cost estimating, time-based breakeven analysis and time-based earned schedule. (2) Tools for Economic Evaluations—This section considers the basic mathematical relations used behind the economic equations and factors; discrete and continuous interest; depreciation terms and methods; and the Present Value of Principal Approach for evaluating loans. (3) Methods for Project Evaluation and Risk Analysis—This section considers payback periods, present worth analysis, return on investment, internal rate of return, benefit/cost ratios and positive-negative project balances; risk techniques of sensitivity analysis, optimistic-pessimistic analysis, discrete probability examples, and continuous probability models using the normal and triangular distributions.

Cost and Management Accounting: Fundamentals and its Applications caters to a much needed requirement of a text that is contemporary and at the same time provides a concise approach to cost and management accounting in the Indian context. Every effort is made in this book to expose the students to the relevance of cost concepts in managerial decision-making. Key Features Learning Objectives: These objectives, at the beginning of each chapter, outline the flow of a chapter and serve as points of comprehension and evaluation. Chapter Opening Case: Each chapter opens with an interesting case of a hypothetical company, posing an issue directly related to the concepts covered in the chapter. This should help the student to relate the chapter's theoretical content to an actual business setting. Opening Case Linkages: Each chapter opening case is revisited later in the chapter, after the students have gained an understanding of the concepts and techniques needed to address it. Link to Practice: All chapters incorporate multiple real-world applications of management accounting concepts. These provide an opportunity for the students to bridge the text material to actual accounting practice. Research Insights: Each chapter discusses current research relevant to the theory and practice of cost and management accounting to assist students develop proper reasoning about the topics under discussion. You are the Decision Maker: Each chapter poses short, thought-provoking questions in order to motivate students to apply the knowledge they have gained. Ethical Dilemma (Real World Cases): The cases talk about importance of business ethics in managerial accounting Coverage of Diverse Industries and Sectors: The book has a balanced mix of manufacturing, service, trading, mature and start-up companies, taken as a background to illustrate the universality of application of cost management tools. Illustration Problems: Two solved review problems accompanied by solutions in each chapter. These problems demonstrate the applicability of major concepts and procedures covered in the chapter. Glossary: Comprehensive glossary at the end of the book.

As often reported in Business Week and Fortune, most large companies today concede that their cost systems are desperately obsolete. In this eagerly awaited book, John Shank and Vijay Govindarajan, nationally known experts on the strategic use of cost information, address head-on the fundamental concepts of management accounting that are in desperate need of change. The authors demonstrate how strategic cost management, the first analytic framework to relate meaningful accounting information to a firm's business strategy, is revolutionizing accounting—and overall business practices in leading firms. With numerous extended examples including Ciba-Geigy, Ford, Texas Instruments, and many more, the authors show how the three key tools of strategic cost management—value chain analysis, strategic positioning analysis, and cost driver analysis—provide a sustainable competitive advantage over firms whose cost systems are in disarray. With persuasive evidence, Shank and Govindarajan demonstrate the strategic power of value chain analysis, i.e., linking external value creating activities all the way from basic raw materials, to component suppliers, and through to the ultimate end-use product delivered to the consumers. Next, they examine how cost management and cost control must be differentiated depending on the strategic positioning chosen by the firm, be it cost leadership or product differentiation. Finally, the authors offer penetrating in-sights on cost driver analysis using such examples as Champion International and Motorola to describe the uses and limitations of activity-based costing, quality costing, and technology costing. Traditional cost analysis, the authors show, is limited to assessing the financial impact of managerial decision alternatives, with no consideration for strategic business objectives. In this indispensable guide, Shank and Govindarajan show how Strategic Cost Management (SCM) relates to a broader context, where strategic elements become far more conscious, explicit, and formal, and cost data is used to develop superior strategies en route to gaining sustainable competitive advantage.

The Book Cost Accounting Multiple Choice Questions (MCQ Quiz) with Answers PDF Download (Cost Accounting PDF Book): MCQ Questions Chapter 1-29 & Practice Tests with Answer Key (MBA/BBA Accounting Textbook MCQs, Notes & Question Bank) includes revision guide for problem solving with hundreds of solved MCQs. Cost Accounting MCQ with Answers PDF book covers basic concepts, analytical and practical assessment tests. "Cost Accounting MCQ" Book PDF helps to practice test questions from exam prep notes. The eBook Cost Accounting MCQs with Answers PDF includes revision guide with verbal, quantitative, and analytical past papers, solved MCQs. Cost Accounting Multiple Choice Questions and Answers (MCQs) PDF Download, an eBook covers solved quiz questions and answers on chapters: Accounting concepts, activity based costing and management, balanced scorecard and strategic profitability analysis, balanced scorecard, quality, time and theory of constraints, basics of accounting, budgeting and accounting, capacity analysis and inventory costing, capital budgeting and cost benefit analysis, cost allocation, customer profitability and sales variance analysis, cost allocation, joint products and byproducts, cost function and behavior, cost management and pricing decisions, cost volume profit analysis, decision making process and information, department costs, common costs and revenues, direct cost variances and management control, financial ratios analysis, flexible budget and management control, flexible budget: overhead cost variance, fundamentals of accounting, inventory management, just in time and costing methods, job costing, management accounting in organization, management control systems and multinational considerations, master budget and responsibility accounting, overhead cost variances and management control, performance measurement, compensation and multinational considerations, process costing, spoilage, rework, and scrap tests for college and university revision guide. Cost accounting Quiz Questions and Answers PDF Download, free eBook’s sample covers beginner's solved questions, textbook's study notes to practice online tests. The Book Class 11-12 Cost Accounting MCQs Chapter 1-29 PDF includes high school question papers to review practice tests for exams. Cost Accounting Multiple Choice Questions (MCQ) with Answers PDF digital edition eBook, a study guide with textbook chapters' tests for CFP/CFA/CMA/CPA/CA/ICCI/ACCA competitive exam. Cost Accounting Practice Tests Chapter 1-29 eBook covers problem solving exam tests from BBA/MBA textbook and practical eBook chapter wise as: Chapter 1: Accounting Concepts MCQ Chapter 2: Activity based Costing and Management MCQ Chapter 3: Balanced Scorecard and Strategic Profitability Analysis MCQ Chapter 4: Balanced Scorecard: Quality, Time and Theory of Constraints MCQ Chapter 5: Basics of Accounting MCQ Chapter 6: Budgeting and Accounting MCQ Chapter 7: Capacity Analysis and Inventory Costing MCQ Chapter 8: Capital Budgeting and Cost Benefit Analysis MCQ Chapter 9: Cost Allocation, Customer Profitability and Sales Variance Analysis MCQ Chapter 10: Cost Allocation: Joint Products and Byproducts MCQ Chapter 11: Cost Function and Behavior MCQ Chapter 12: Cost Management and Pricing Decisions MCQ Chapter 13: Cost Volume Profit Analysis MCQ Chapter 14: Decision Making Process and Information MCQ Chapter 15: Department Costs, Common Costs and Revenues MCQ Chapter 16: Direct Cost Variances and Management Control MCQ Chapter 17: Financial Ratios Analysis MCQ Chapter 18: Flexible Budget and Management Control MCQ Chapter 19: Flexible Budget: Overhead Cost Variance MCQ Chapter 20: Fundamentals of Accounting MCQ Chapter 21: Inventory Management, Just in Time and Costing Methods MCQ Chapter 22: Job Costing MCQ Chapter 23: Management Accounting in Organization MCQ Chapter 24: Management Control Systems and Multinational Considerations MCQ Chapter 25: Master Budget and Responsibility Accounting MCQ Chapter 26: Overhead Cost Variances and Management Control MCQ Chapter 27: Performance Measurement, Compensation and Multinational Considerations MCQ Chapter 28: Process Costing MCQ Chapter 29: Spoilage, Rework and Scrap MCQ The e-Book Accounting Concepts MCQs PDF, chapter 1 practice test to solve MCQ questions: Conversion costs, cost analysis, inventory types, inventorable cost and period cost, manufacturing costs, period costs, prime costs, and types of inventories. The e-Book Activity Based Costing and Management MCQs PDF, chapter 2 practice test to solve MCQ questions: Activity based costing systems, activity based costing, accounting, broad averaging and consequence, and refining costing system. The e-Book Balanced Scorecard and Strategic Profitability Analysis MCQs PDF, chapter 3 practice test to solve MCQ questions: Balanced scorecard, strategic analysis, accounting strategy, operating income, and strategy implementation. The e-Book Balanced Scorecard: Quality, Time and Theory of Constraints MCQs PDF, chapter 4 practice test to solve MCQ questions: Costs of quality, quality improvements, customer response time and on time performance, analyzing problems and improve quality, balance scorecard and measures, bottlenecks, financial perspective, and competitive tool. The e-Book Basics of Accounting MCQs PDF, chapter 5 practice test to solve MCQ questions: Direct costs, indirect costs, and what is cost in accounting. The e-Book Budgeting and Accounting MCQs PDF, chapter 6 practice test to solve MCQ questions: Budgeting and responsibility accounting, and Kaizen budgeting. The e-Book Capacity Analysis and Inventory Costing MCQs PDF, chapter 7 practice test to solve MCQ questions: Absorption costing, inventory costing methods, manufacturing companies, and throughput costing. The e-Book Capital Budgeting and Cost Benefit Analysis MCQs PDF, chapter 8 practice test to solve MCQ questions: Accrual accounting, rate of return method, capital budgeting and inflation, capital budgeting stages, cost analysis dimensions, discounted cash flow, and payback method. The e-Book Cost Allocation, Customer Profitability and Sales Variance Analysis MCQs PDF, chapter 9 practice test to solve MCQ questions: Cost allocation and costing systems, customer revenues and costs, sales mix and sales quantity variances, and static budget variance. The e-Book Cost Allocation: Joint Products and Byproducts MCQs PDF, chapter 10 practice test to solve MCQ questions: Joint cost, irrelevant joint costs, byproducts accounting, constant gross margin percentage NRV method, decision making, net realizable value method, sales value, split off method, and scrap. The e-Book Cost Function and Behavior MCQs PDF, chapter 11 practice test to solve MCQ questions: Estimating cost functions, estimating cost function using quantitative analysis, linear cost functions, nonlinearity and cost functions, cost estimation methods, curves and nonlinear cost function, data collection and adjustment issues, independent variables, quantitative analysis in marketing, regression analysis, regression equation, regression line, specification analysis, and estimation assumptions. The e-Book Cost Management and Pricing Decisions MCQs PDF, chapter 12 practice test to solve MCQ questions: Pricing strategies, cost based pricing, product budgeting life cycle and costing, target costing and target pricing, value engineering, insurance and lock in costs. The e-Book Cost Volume Profit Analysis MCQs PDF, chapter 13 practice test to solve MCQ questions: CVP analysis, operating income, breakeven point, target income, gross margin calculations, total costs, unit costs, and variable cost. The e-Book Decision Making Process and Information MCQs PDF, chapter 14 practice test to solve MCQ questions: Decision making process, information and decision process, concept of relevance, insourcing versus outsourcing, and make versus buy decisions. The e-Book Department Costs, Common Costs and Revenues MCQs PDF, chapter 15 practice test to solve MCQ questions: Allocating costs, common costs, revenue allocation, revenue allocation methods, multiple support departments, operating departments, bundled products, single rate and dual rate methods. The e-Book Direct Cost Variances and Management Control MCQs PDF, chapter 16 practice test to solve MCQ questions: Use of variances, efficiency variance, price and efficiency variance, management accounting, period costs, and static budget. The e-Book Financial Ratios Analysis MCQs PDF, chapter 17 practice test to solve MCQ questions: Sensitivity analysis, operating income, breakeven point, target income, contribution margin calculations, contribution margin versus gross margin, effects of sales mix on income, gross margin calculations, and uncertainty. The e-Book Flexible Budget and Management Control MCQs PDF, chapter 18 practice test to solve MCQ questions: Flexible budget, flexible budget variance, static budget, sales volume variance, and cost accounting. The e-Book Flexible Budget: Overhead Cost Variance MCQs PDF, chapter 19 practice test to solve MCQ questions: Cost variance analysis, overhead cost variance analysis, fixed overhead cost variances, activity based costing, production volume variance, setup cost, variable and fixed overhead costs. The e-Book Fundamentals of Accounting MCQs PDF, chapter 20 practice test to solve MCQ questions: Direct costs, indirect costs, manufacturing costs, manufacturing, merchandising and service sector companies, total costs, unit costs, and types of inventory. The e-Book Inventory Management, Just in Time and Costing Methods MCQs PDF, chapter 21 practice test to solve MCQ questions: Inventory management system, inventory related relevant costs, just in time purchasing, cost accounts, inventory management, MRP, retail organizations, and inventory management. The e-Book Job Costing MCQs PDF, chapter 22 practice test to solve MCQ questions: Building block concepts of costing systems, budget indirect costs, end of financial year, indirect costs allocation, normal costings, total costs, unit costs, and variations from normal costing. The e-Book Management Accounting in Organization MCQs PDF, chapter 23 practice test to solve MCQ questions: Management accounting, management accounting guidelines, organization structure and management accountant, decision making process, information and decision process, financial and cost accounting, and strategic decisions. The e-Book Management Control Systems and Multinational Considerations MCQs PDF, chapter 24 practice test to solve MCQ questions: Management control systems, decentralization costs, organization structure, decentralization, and transfer pricing. The e-Book Master Budget and Responsibility Accounting MCQs PDF, chapter 25 practice test to solve MCQ questions: Budgets and budgeting cycle, Kaizen budgeting, responsibility and controllability, accounting concepts, accounting principles, computer based financial planning models, internal controls accounting, sensitivity analysis, uncertainty, and types of inventory. The e-Book Overhead Cost Variances and Management Control MCQs PDF, chapter 26 practice test to solve MCQ questions: Fixed overhead costs, flexible budget variance, and planning of variable. The e-Book Performance Measurement, Compensation and Multinational Considerations MCQs PDF, chapter 27 practice test to solve MCQ questions: Performance measure, financial and nonfinancial performance measures, economic value added, strategy and levels, and residual income. The e-Book Process Costing MCQs PDF, chapter 28 practice test to solve MCQ questions: Process costing system, operation costing, transferred in costs, WAM and spoilage, and weighted average method. The e-Book Spoilage, Rework and Scrap MCQs PDF, chapter 29 practice test to solve MCQ questions: Job costing, spoilage, rework and scrap terminology, scrap and byproducts accounting, types of spoilage, WAM, and spoilage.

The advent of the knowledge economy changes the ways in which firms organise their activities and how they strategize in the market place. This non-technical volume lays the foundations for an analysis of these phenomena. The discussion is both theoretical and empirical.

Good Strategy/Bad Strategy clarifies the muddled thinking underlying too many strategies and provides a clear way to create and implement a powerful action-oriented strategy for the real world. Developing and implementing a strategy is the central task of a leader. A good strategy is a specific and coherent response to—and approach for—overcoming the obstacles to progress. A good strategy works by harnessing and applying power where it will have the greatest effect. Yet, Rumelt shows that there has been a growing and unfortunate tendency to equate Mom-and-apple-pie values, fluffy packages of buzzwords, motivational slogans, and financial goals with “strategy.” In Good Strategy/Bad Strategy, he debunks these elements of “bad strategy” and awakens an understanding of the power of a “good strategy.” He introduces nine sources of power—ranging from using leverage to effectively focusing on growth—that are eye-opening yet pragmatic tools that can easily be put to work on Monday morning, and uses fascinating examples from business, nonprofit, and military affairs to bring its original and pragmatic ideas to life. The detailed examples range from Apple to General Motors, from the two Iraq wars to Afghanistan, from a small local market to Wal-Mart, from Nvidia to Silicon Graphics, from the Getty Trust to the Los Angeles Unified School District, from Cisco Systems to Paccar, and from Global Crossing to the 2007–08 financial crisis. Reflecting an astonishing grasp and integration of economics, finance, technology, history, and the brilliance and foibles of the human character, Good Strategy/Bad Strategy stems from Rumelt’s decades of digging beyond the superficial to address hard questions with honesty and integrity.