Cost & Effect: Introduction (Cost and Performance Management Systems)

Changes in business, triggered by global competition and technological innovations, have led to remarkable innovations in the use of financial and nonfinancial information in organizations. The new environment demands more relevant cost and performance information on organization activities, processes, products, services, and customers. This chapter provides a brief introduction to activity-based cost systems, and outlines the primary objective of the book: to develop an explicit vision for an integration of cost and performance measurement systems.