MANAGING COSTS AND REVENUES-2011 8-1 Managing Costs & Revenues Professor William F. O’Brien, MBA, CPA Spring 2011.

Slides:



Advertisements
Similar presentations
Cost Management ACCOUNTING AND CONTROL
Advertisements

Performance Evaluation Using the Balanced Scorecard
3.1 © 2007 by Prentice Hall 3 Chapter Information Systems, Organizations, and Strategy.
Assignment Four Underwriting. Definitions Underwriting – The process of selecting policyholders by recognizing and evaluation hazards, establishing prices.
Managing Costs & Revenues Professor William F. O’Brien, MBA, CPA Spring 2011.
Managing Costs & Revenues Professor William F. O’Brien, MBA, CPA Spring 2011.
Advanced Cost Management Professor William F. O’Brien, MBA, CPA Fall 2007.
STRATEGIC COST MANAGEMENT - BA122B – ISO 9000 n International Organization for Standardization n Internationally accepted guidelines for quality.
STRATEGIC COST MANAGEMENT - BA122B – Spring 2011Slide 6-1 Quality and Strategic Cost Management n Quality and profitability are related n Premium on quality.
Advanced Cost Management Professor William F. O’Brien, MBA, CPA Spring 2010.
Managing Costs and Revenues--MBA I--Spring Managing Costs & Revenues Professor William F. O’Brien, MBA, CPA Spring 2010.
Managing Costs and Revenues--MBA I--Spring Managing Costs & Revenues Professor William F. O’Brien, MBA, CPA Spring 2009.
MANAGING COSTS AND REVENUES Managing Costs & Revenues Professor William F. O’Brien, MBA, CPA Spring 2011.
STRATEGIC COST MANAGEMENT - BA122B - Fall 2008Slide 5-1 Life Cycle Costing Product Specification Target Price Target Profit Target Cost Major Product and.
STRATEGIC COST MANAGEMENT - BA122B - Fall Environmental Activities n Prevention activities n Assessment activities n Control activities n Failure.
11-1 Ch. 11App: The Financial Impact The Financial Assessment Process Budgetary considerations play a role in the identification, evaluation, and control.
MANAGING COSTS AND REVENUES Managing Costs & Revenues Professor William F. O’Brien, MBA, CPA Spring 2011.
STRATEGIC COST MANAGEMENT - BA122B - Fall 2005Slide 14-1 ISO 9000 n International Organization for Standardization n Internationally accepted guidelines.
STRATEGIC COST MANAGEMENT - BA122B – Fall Value Chain Analysis (VCA) & Target Costing.
Managing Costs and Revenues--MBA I--Spring Managing Costs & Revenues Professor William F. O’Brien, MBA, CPA Spring 2008.
Managing Costs and Revenues--MBA I--Spring ISO 9000 International Organization for Standardization Internationally accepted guidelines for quality.
Managing Costs and Revenues--MBA I--Spring Managing Costs & Revenues Professor William F. O’Brien, MBA, CPA Spring 2010.
STRATEGIC COST MANAGEMENT - BA122B – Fall 2011Slide 7-1 Quality and Strategic Cost Management n Quality and profitability are related n Premium on quality.
Managing Costs and Revenues--MBA I--Spring Managing Costs & Revenues Professor William F. O’Brien, MBA, CPA Spring 2008.
STRATEGIC COST MANAGEMENT - BA122B – Fall 2010Slide 11-1 Environmental Activities n Prevention activities n Assessment activities n Control activities.
Strategic cost analysis 2
MARKETING STRATEGY O.C. FERRELL MICHAEL D. HARTLINE 11 Marketing Implementation and Control.
STRATEGIC COST MANAGEMENT - BA122B - Fall 2006Slide 5-1 Life Cycle Costing Product Specification Target Price Target Profit Target Cost Major Product and.
Advanced Cost Management Professor William F. O’Brien, MBA, CPA Spring 2005.
COST MANAGEMENT Accounting & Control Hansen▪Mowen▪Guan COPYRIGHT © 2009 South-Western Publishing, a division of Cengage Learning. Cengage Learning and.
Managing Costs & Revenues Professor William F. O’Brien, MBA, CPA Spring 2011.
Advanced Cost Management-Fall Advanced Cost Management Professor William F. O’Brien, MBA, CPA Fall 2002.
Chapter 5: Supply Chain Performance Measurement and Financial Analysis
Managerial Accounting-Strategic Cost Analysis--Spring Advanced Cost Management Professor William F. O’Brien, MBA, CPA Fall 2001.
1 INTRODUCTION Overview of Managerial Accounting Accounting Principles II AC Fall Semester, 1999.
Project Closure CHAPTER FOURTEEN Student Version Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
1 Copyright © 2000 by Harcourt, Inc. All rights reserved. (1) 11 Evaluating the Performance of Salespeople Module 11 Evaluating the Performance of Salespeople.
COST MANAGEMENT Accounting & Control Hansen▪Mowen▪Guan COPYRIGHT © 2009 South-Western Publishing, a division of Cengage Learning. Cengage Learning and.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.
Your LogoYour own footer. Production & Operations Management Chapter : The Role of Operations Management Business Process Reengineering Inventory Management.
STRATEGIC MANAGEMENT ACCOUNTING Organizing Basics for Structure Organizations are comprised of individuals who work together in GROUPS: teams, taskforces,
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.
Quality Management.
5.4 Quality Assurance Chapter 33. What is a quality product? A good or service that meets customers’ expectations and is “fit for purpose”. A good or.
Where We Are Now 14–2. Where We Are Now 14–2 Major Tasks of Project Closure Evaluate if the project delivered the expected benefits to all stakeholders.
© 2009 Pearson Prentice Hall. All rights reserved. Quality Cost.
Copyright 2006 John Wiley & Sons, Inc. Beni Asllani University of Tennessee at Chattanooga Operations Management - 5 th Edition Chapter 3 Roberta Russell.
Copyright © 2013 Nelson Education Ltd.
COSTING AND THE VALUE CHAIN CHAPTER 18 PAGE# 794 Faisal
1 Project Management C53PM Session 3 Russell Taylor Staff Work-base – 1 st Floor
Chapter 16 Managing costs and quality
1 PowerPointPresentation by PowerPoint Presentation by Gail B. Wright Professor Emeritus of Accounting Bryant University © Copyright 2007 Thomson South-Western,
© 2013 John Wiley & Sons, Ltd, Accounting for Managers, 1Ce, Ch 9 1.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Management Accounting Overview CHAPTER ONE 1. OBJECTIVES 1.Discuss the need for management accounting information. 2.Differentiate between management.
LINKAGE OF QUALITY IMPROVEMENT AND PROFITS The Cost of Quality.
Quality and Environmental Cost Management
THE SUPERVISOR AS A FINANCIAL MANAGER
UNDERSTANDING ISO 9001:2008.
Chapter 1 Introduction to Cost Management
Total Quality Management
5.4 Quality Assurance Chapter 33.
Managing Resources, Activities, and People
Quality and Environmental Cost Management
Total Quality Management
THE SUPERVISOR AS A FINANCIAL MANAGER
Introduction: Training for Competitive Advantage
BU5004 Managerial Accounting
Total Quality Management
Where We Are Now 14–2. Where We Are Now 14–2 Major Tasks of Project Closure Evaluate if the project delivered the expected benefits to all stakeholders.
Presentation transcript:

MANAGING COSTS AND REVENUES Managing Costs & Revenues Professor William F. O’Brien, MBA, CPA Spring 2011

MANAGING COSTS AND REVENUES Session 8 n Total Quality n Environmental Cost n Allied Case n Bridgewater Case

MANAGING COSTS AND REVENUES ISO 9000 n International Organization for Standardization n Internationally accepted guidelines for quality management and standards n Cost of quality = percent of sales

MANAGING COSTS AND REVENUES Quality and Strategic Cost Management n Quality and profitability are related n Premium on quality leads to larger market share n Premium on quality leads to higher ROI

MANAGING COSTS AND REVENUES Elements of TQM n Continuous improvement n Customer focus n Employee involvement

MANAGING COSTS AND REVENUES IMA’s TQM Process n Year One n Quality council and staff n Executive quality training n Quality audits n Gap analysis n Strategic quality improvement plans n Year Two n Employee quality training n Quality teams n Establish measurement system and goals n Year Three n Revise compensation system n Launch external initiatives (value chain) n Review and revise

MANAGING COSTS AND REVENUES Other Quality Thoughts n Poor quality is disastrous for service industries n Increased quality = increased productivity n Management accountants increase the focus…see page 282/290.

MANAGING COSTS AND REVENUES Ansari: MMQC n Quality costs: costs incurred to ensure products/services meet customers’ expectations n Features n Performance

MANAGING COSTS AND REVENUES MMQC n Strategic Implications of Quality Cost System n Supports quality as a strategic adv. n Provides the total cost of quality to a product n Assists in avoiding non-productive time

MANAGING COSTS AND REVENUES MMQC n Types of quality costs n Prevention n Appraisal n Internal failure n External failure

MANAGING COSTS AND REVENUES MMQC n Quality Management System n Understand customer requirements n Establish quality goals n Set work processes (P) n Perform work & monitor output (A & I) n Deliver product & monitor cust. satisf.(E) n Perform root cause analysis

MANAGING COSTS AND REVENUES MMQC n Quality Cost and Customer Satisfaction n Total firm spending n Spending by category n Amount of financial benefits n Focus on customer quality concerns n Elimination of root causes

MANAGING COSTS AND REVENUES MMQC n Value Index n Develop customer perf. rankings n Estimate quality costs for each element n Compute the value index n Cust. Pref. % / Cost % n Root cause analysis and “fish bones”

MANAGING COSTS AND REVENUES MMQC n Attribute Implications n Technical n Improved decision relevance n Process understanding n Behavioral n Focus on Customer Requirements n Improved quality attitudes n Better mgt. Visibility…but watch out for “padding” n Cultural n Quality as a way of life n Quality as an ethical value

MANAGING COSTS AND REVENUES Environmental Activities n Prevention activities n Assessment activities n Control activities n Failure activities

MANAGING COSTS AND REVENUES Measuring and Reporting Environmental Costs n Traditional systems must be augmented by interviews n Schedule costs into hazardous & non- hazardous categories n Classify the costs by activities n Report and analyze routinely

MANAGING COSTS AND REVENUES Managing Environmental Costs n Accidents vs. collisions n Product design n Process design n PP&E acquisition n Operational venue n Encourage value chain participation n Routinely integrate MMEC into the decision making process n Checklists n EC Summaries n Post-mortem reviews

MANAGING COSTS AND REVENUES MMEC--TBC Impact n Technical n Improved decision relevance n Insight contrary to common beliefs n Better process identification n Environmental cost insight n Behavioral n EC visibility: what gets measured; gets done

MANAGING COSTS AND REVENUES MMEC--TBC, continued n Cultural n See the “Why Care” section n Societal value sharing n Changing environmental mindsets n Compliance and control vs. avoidance n Role of finance as “facilitator”