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Cards In This Set
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What is new about the approaches to managing cost and quality?
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 Focus on managing costs by understanding the Drivers of COSTStrategic focus on factors that Drive CUSTOMER VALUEPROCESS ORIENTATION - all employees/depts. need to work efficiently together to create CVmge COST$$ |
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Incremental improvement of Processes?
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ABMActivity Based Managment
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What is BPR?
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Business Process Re-Engineering
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What are 5 CONTEMPORARY approaches to managing costs and quality?
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1. ABM2. BPR3. Lifecycle costing4. Target Costing5. TOC appchs
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2 functions of ABM?
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1. ABC - allocate o/h costs (to activities and products in proportion to activities)2. Manage costs
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4 steps to ABM?
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Differences between ABM and BPR?
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ABM - incremental continuous improvement of processesBPR - radical, fundamental changes
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How should you evaluate activities using ABM?
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Value add Act - customer willing to pay forNon-Val add --> major opportunities to recduce costs
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Similarities Between ABM and BPR?
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Which approach goes well beyond material, labour and O/H costs?
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Defn: Life Cycle Costing accumulation and management of costs over life cycle.
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4 stages to Life cycle costing? with important element?
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 1. Planning2. Design and Development3. Production4. Delivery and Dist. --> customer support/logistics LC BUDGETTING |
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Life Cycle Costing - place of Budgetting?
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for expected costs/revenuelook at success of product line over LCTRADE OFFS - for planning for R&D, vs production costs.
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4 steps of ABM?
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 1. ID2. Analyse3. IMP4. Perf. measures |
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define Target Costing
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Process to ID how much a product should COST to generate the desired Profit
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4 steps to Target Cotsing
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1. Estimate Target Selling PRICE2. Determine the target PROFIT MARGIN3. Determine target COSTS4. Id cost reduction OBJECTIVE --> create plans to reduce cost.
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