Intelligent cost system design.: An article from: Strategic Finance

This digital document is an article from Strategic Finance, published by Institute of Management Accountants on June 1, 1999. The length of the article is 1776 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: Activity-based cost systems do not have to be exceedingly complex or overly expensive. To design a cost-effective activity-based system, a two-system approach is recommended. When using this design approach, two cost systems are created, one of which is a strategic activity-cost system that is made as simple as possible and is used to monitor product costs. The other system is created to support operational improvement and learning and is designed in a minimalist fashion although it can handle the analysis of tasks that may number in the hundreds. The key to this type of cost system design is the scope that the two systems allow. While the strategic system can be used to examine firm-wide activities, the more complex operational system can be used to focus attention on specific areas of the firm where organizational learning can be improved.

Citation Details
Title: Intelligent cost system design.
Author: Robin Cooper
Publication:Strategic Finance (Refereed)
Date: June 1, 1999
Publisher: Institute of Management Accountants
Volume: 80 Issue: 12 Page: 18(3)

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