Discussion Board Response:
Contemporary Management Techniques
Business 601: Accounting for Decision Making
March 30, 2014
DISCUSSION BOARD RESPONSE: CONTEMPORARY MANAGEMENT TECHIQUES
Discussion Board One asks the student to select a recognized company and a Contemporary Management Technique from Cost management: A Strategic Emphasis by Blocher, Stout, Juras, and Cokins (2013). The student is instructed to draw a parallel between the chosen company and technique, and elaborately describe how the technique would effectively aid in maximizing the company’s success. To complete this assignment, Johnathan Bradley describes the Ford Motor Company and activity-based costing. He describes the Ford Motor Company as a dominant company within the automotive manufacturing industry, and uses research performed by Eggers and Bangert (1998) to define activity-based costing as a tool that measures costs based on segmented activities. Jonathan effectively uses the study to capture the advantages of activity-based costing, and gainfully applies these findings to Ford Motor Company. He illustrates how the use of activity-based costing would support the company’s critical success factors by increasing quality levels and improving cycle time. Additionally, Jonathan explains how the utilization of this Contemporary Management Technique would aid Ford Motor Company in effectively dividing costs based on activity, which would allow the company to ensure maximum efficiency throughout all activities.
Despite Jonathan’s knowledgeable response to the discussion board, there are areas which could have been further explored. For example, it would have been beneficial to discuss traditional costing in comparison to activity-based costing. Phan, Baird, and Blair (2014) describe traditional costing as identifying company costs based on the degree of the cost driver (p.792). By comparing this to...
References: Andersen, S.W. (1995). A framework for assessing cost management system changes: The case of activity-based costing implementation at general motors, 1986-2003. Journal of Management Accounting Research, 21-51. Retrieved from http://deepblue.lib.umi ch.edu/bitstream/handle/2027.42/ 35357/b1784201.0001.001.pdf?sequence=2
Eggers, J. & Bangert, C. (1998). Activity-based costing. Journal (American Water Works Association). 90(6). 63-69. Retrieved from http://www.jstor.org/stable/41296289
Blocher, E.J., Stout, D.E., Juras, P.E., & Cokins, G. (2013). Cost management: A strategic emphasis (6th ed.). Boston, MA: McGraw-Hill Irwin Publishing. ISBN: 9780078025532
Phan, T., Baird, K., Blair, B. (2014). The use and success of activity-based management practices at different organizational life cycle stages. International Journal of Production Research, 52(3), 787-803. doi:10.1080/00207543.2013.839893
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