ACC3200 Study Guide - Final Guide: Business Process Reengineering, Whole-Life Cost, Throughput Accounting

• School: Monash University
• Department: Business - Accounting
• Course: ACC3200
• Professor: Ahmad Sujan

Document Summary

Goal is to reduce costs by understanding their real causes as well as to improve other aspects of performance such as quality and delivery. Reduce costs by identifying nva activities and their real cost drivers. Control costs within the business (just manufacturing process) Control costs both within (manufacturing process) & beyond the business (supplier & customer profitability analyses) Looks at the business as more of a process rather than many discrete separately departments. Modern approaches include: activity based management (amb, business process re-engineering (bpr, life cycle costing and budgeting, target costing, theory of constraints (toc) and throughput accounting, activity based management (abm) The process of using info from abc to analyse activities, cost drivers and performance so customer value and profitability can be improved. Steps in abm: create a process map which group together similar activities, look at all activities within one category & identify nva activities, target the root cause. Identify root causes, why the nva activity is occurring.