Cost Accounting. A managerial emphasis Essay Example | Topics and Well Written Essays - 500 words

Cost Accounting. A managerial dialect - Essay ExampleThis in turn drive up fixed speak tos due to delicate factor substitution as managers turn to other less efficient activities or resources to substitute the employment that is used as the bell driver. The fixed cost is in turn costed over a disdain level of activity, making the activity seem costly when in fact it might be a lucrative market or product (Doogar, 2001).Q12. In activity based management, cost driver analysis, cause-and-effect diagram, pareto analysis, and instruction execution measurement are performed. Activity based analysis examines, quantifies, and explains the effects of the cost driver on the cost of an activity. Cause-and-effect diagram maps out causes that affect an activity, process, stated problem, or outcome. In pareto analysis, histogram of cost drivers that contribute to the total cost is constructed. Performance measurement identifies the work performed and the results achieved by an activity proce ss or organizational unit (Porter, 2006).Q13. Andrew Carnegie installed consider scales at all points in his mills to see whether material was saved or not. Rather than checking case after the products accommodate been produced, Edward Demings ideas of Total Quality Management propounded a cease in dependence on mass inspections-quality must be designed and built into the processes, preventing defects rather than attempting to detect and fix them after they have occurred.