ACG-3341 Lecture Notes - Lecture 1: Decision Rule, Management Accounting, Value Chain
Document Summary
Cost accounting: measures, analyzes, and reports financial and nonfinancial information related to the costs of acquiring or using resources: assumes that it"s part of managerial accounting. Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace. There are two broad strategies: cost leadership, product differentiation. Strategic cost management: describes cos management that specifically focusses on strategic issues. Creating value is an important part of planning and implementing strategy. Value: the usefulness a customer gains from a company"s product or service: the entire customer service experience determines the value a customer derives from a product. Value chain: the sequence of business functions in which a product is made progressively more useful to customers. Consists of: research and development, design of products and processes, production, marketing, distribution, customer service. Customers want companies to the use the value chain to deliver ever-improving levels of performance when it comes to the following: cost and efficiency, quality, time, innovation.
