Ronald Lewis – författare

The declining domination of American manufacturers in world class markets has resulted in widespread criticism of traditional costing methods. Activity-based accounting for manufacturing costs emerged in the 1980s to satisfy the changes taking place in production methods and techniques, such as Just-in-Time Inventory Control and Flexible Manufacturing Systems. Although activity-based costing methods may be new in manufacturing processes, they have been advocated and applied by marketing managers since the late 1960s, according to Professor Lewis. The accounting profession has finally recognized the advantages of activity-based concepts and methods for both marketing and manufacturing functions. This book shows how activity-based methods and other cost analysis and control techniques may be used by manufacturing and marketing managers.Part I explains the cost concepts and terminology used in modern businesses and describes the concept of a fully integrated manufacturing and costing system. In world class competition the costing systems must serve the total needs of management, not just financial reporting requirements. Costing systems must be flexible and multi-purpose, which is both possible and practical with state-of-the-art computers and software. Part II summarizes the traditional cost accounting systems, describing job-costing and standard costing systems. The allocation of costs becomes more important with technological advances. A full chapter is devoted to the methods of allocation and the changes required to satisfy advanced manufacturing and activity-based costing techniques. Part III illustrates activity-based costing for manufacturing, activity-based costing for marketing, and an activity-based approach to the behavior of costs as well as explaining the traditional factors of variability. Part IV describes the techniques that are necessary for analysis and control of costs by management. To be well informed, managers must know the fundamentals of break-even analysis, relevant costing, capital budgeting, ROI and transfer pricing. The book makes these techniques easy to understand and to apply to real-life situations. It is particularly appropriate for manufacturing managers involved in operations, and for all marketing managers.

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 that have already implemented ABC systems. The study was directed 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.