Activity-Based Models for Cost Management Systems

(Hardback)

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Description

Activity-based costing emerged as an important accounting concept in the mid-1980s in response to global competition. There is an urgent need to place it in perspective, so that both production and marketing managers know its advantages and its limitations. This book describes and explains where activity-based concepts fit in the cost and management accounting body of knowledge. It first shows the traditional framework of cost concepts, terminology and techniques in order to demonstrate how the activity-based methods can bring about constructive changes in financial control systems. The major feature of the book is the three ABC models for manufacturing processes, marketing functions, and service industries. These models are based on the Institute of Management Accounting (IMA)-sponsored case studies of corporate divisions or branches by Harvard professors, Cooper and Kaplan, and KPMG Peat Marwick. The book also includes illustrations of the most important cost analysis and control techniques that every successful operating manager must know.

Reviews

In this excellent volume Lewis provides an extermely practical introduction to and explanation of traditional cost concepts (5 chapters); the traditional tools of management accounting analysis and control (5 chapters); and the development of activity-based costing systems (ABCs) (6 chapters). This hands-on primer is very well written and contains numerous exhibits that clearly and concisely demonstrate every step in the process of using the tolls of management accounting. Highly recommended for all business collections.-Choice
"In this excellent volume Lewis provides an extermely practical introduction to and explanation of traditional cost concepts (5 chapters); the traditional tools of management accounting analysis and control (5 chapters); and the development of activity-based costing systems (ABCs) (6 chapters). This hands-on primer is very well written and contains numerous exhibits that clearly and concisely demonstrate every step in the process of using the tolls of management accounting. Highly recommended for all business collections."-Choice

Author Bio

RONALD J. LEWIS, Professor Emeritus of Accounting at Central Michigan University, has extensive experience in industry and academia and as an international lecturer. Among his various publications are Activity-Based Costing for Marketing and Manufacturing (Quorum, 1993) and his latest award-winning article Activity-Based Accounting for Marketing in Management Accounting.