Accounting 6350T Week 3

1
Accounting 6350T Week 3

• Gary Spraakman
• First assignment due
• Lecture Chapter 10 and 11 Activity-Based
  Management, Managing Quality and Time Assignment
• Accounting cases

2
Writing off over or under allocated indirect costs

• If material, to work in process, finished goods,
  and cost of goods sold
• If immaterial, to cost of goods sold.

3
Value creation chain

• Value chain assumed a monolithic firm
• See slide
• Value creation chain also assumes outsourcing
• Source gt Enhance gt Aggregate gt Disseminate
• 
  lt Interact

4
Dells value creation chain

• Source gt Disseminate gt
• Enhance gt lt Interact
• Aggregate gt

5
Chapter 10 lecture

• See slides

6
Caprock case

• Review of process costing
• Review of job costing
• ABC costing assignment

7
Chapter 11 Lecture

• See slides

8
Course package reading

• Takayuki Asada, et al
• Hoshin, bottom up, direct costs
• ABM, top down, indirect costs
• Factors that prevented success, hurt motivation
• Lack of a clear policy on future direction
• 7 cut across the board

9
General Electrics Management

• Context
• IT intensive
• Outsourcing
• Boundarylessness
• Systematic management
• Problem free businesses
• Management training centre
• Vitality curve, A, B, and C managers
• Frequent appraisals and measurements
• Work-outs
• Six sigma

10
Class discussion

• HMSS 10.46, 11. 27, 11.30

11
The End