Designing Cost Management Systems to Support Business Decision-Making: Industry Inspired Case Studies

✍ Scribed by Pieter Buys (editor)

• Publisher: Palgrave Macmillan
• Year: 2021
• Tongue: English
• Leaves: 158
• Category: Library

✦ Synopsis

This book illustrates the importance effective cost management systems in

providing a supportive environment in which reliable and relevant management

information can be generated. Such a cost management system is only attainable

if the importance of key business, operational and stakeholder requirements are

recognised within the organisational context. In illustrating this importance, this

book provides several case studies as examples thereof. The first two case studies

focus on the engineering sector and illustrates the development of a cost

management system in a water recycling context; and the design of a budgetary

system in a mining engineering context. The remaining case studies focus on the

services sector, including cost management systems for a digital technology

services provider and a medical insurance services provider; an alternative

activity-based costing approach for a public sector services provider; and finally

a re-designed value stream for an automotive services provider. Academic

researchers and industry managers in the fields of management accounting and

financial management, as well as engineering and operations management, will

find value in the experiences described herein.

✦ Table of Contents

Contents
List of Figures
List of Tables
1 Introduction
1 Background
2 Systems Thinking in Cost Management
2.1 Introduction
2.2 Management Cybernetics
2.3 Systems Basics
3 Contextualization and Purpose
4 Closing
References
2 Development of an Operation-Centric Costing System: The Case of a Water-Recycling Fabrication Facility
1 Background
2 Research Setting
3 Objective
4 Rudiments of Indirect Cost Management
4.1 Introduction
4.2 Management Perspectives on the Cost Concept
4.3 Capacity Considerations
4.4 Understanding Cost Behaviour
4.5 Cost Management Phases
5 Research Methodology
6 Diagnosis: The Case of OEP
6.1 Problem Definition: Current Costing Approach
Organisational Structure
Business Analysis
Cost Analysis
6.2 Artefact Creation: Revisiting the Costing Approach
Cost Management Framework
Cost Application Considerations
Costing System Template Revisited
7 Concluding Discussion
7.1 Research Synopsis
7.2 Conclusion
7.3 Limitations and Further Research
References
3 Designing a Budgetary Control Framework: The Case of a Multinational Mining Engineering Company
1 Background
2 Research Setting
3 Research Methodology
4 First Iteration: Conceptual Foundation
5 Second Iteration: Bridging the Industry 4.0 Gap
6 Discussion and Conclusion
References
4 Developing a Costing System for a Digital Technology Service Firm
1 Introduction
2 Research Setting
3 Conceptual Framework
4 Methodology and Design
5 Data and Results
5.1 Document Analysis
5.2 Interview Results
6 Development of a Costing System
6.1 Design Stage
6.2 Problem Formulation/Planning
6.3 Artefact Creation
6.4 Evaluation
7 Implementation Stage
7.1 Problem Formulation/Planning
7.2 Artefact Creation
7.3 Evaluation
8 Conclusion
References
5 Designing a Cost Management Framework for a Medical Scheme Service Provider in South Africa
1 Introduction
2 Literature Study
3 Theoretical and Conceptual Framework
4 Research Design
5 Results
5.1 Phase 1: Proof of Concept
5.2 Phase 2: Alpha-Design
5.3 Phase 3: Beta-Design
6 Discussion and Conclusion
References
6 Considerations of Activity-Based Costing in the Public Sector: The Case of SASSA
1 Introduction
2 Background
2.1 Key Cost Management Concepts
2.2 Systems and Structures of SASSA
3 Literature Review
4 Method
5 Results
5.1 Theme 1: Dependent Factors for the Successful Implementation of Activity-Based Costing
5.2 Theme 2: The Importance of a Financial Information System in the Implementation of Activity-Based Costing
5.3 Theme 3: Efficient Resource Allocation Is Possible in an Activity-Based Management Environment
6 Summary and Conclusion
References
7 Improving an Automotive Workshop’s Profitability Using Lean Management Principles
1 Background
2 Research Setting
3 Objectives
4 Building Blocks of Process Improvement
4.1 Introduction
4.2 Lean Management
4.3 Activity-Based Costing
4.4 Value Stream Mapping
5 Research Method
6 The Case of AMG
6.1 Problem Definition: Current Scenario
Current Workflow
Technician Efficiency
Technician Costs
Technician Revenue
Technician Profitability
Reducing Wasted Time
6.2 Problem Reduction: Revisiting the Value Stream
Cost/revenue Calculation
Potential Technician Costs
Potential Technician Revenue
Potential Technician Profitability
7 Concluding Discussion
7.1 Research Synopsis
7.2 Conclusion
7.3 Limitations
References
8 Concluding Comments
1 Background
2 Summative Findings
3 Closing
Index