tailieunhanh - Ebook Accounting - An introduction (5th edition): Part 2

(BQ) Part 2 book "Accounting - An introduction" has contents: Costing and performance evaluation in a competitive environment, accounting for control, making capital investment decisions, financing a business, managing working capital. | Find more at CHAPTER 11 Costing and performance evaluation in a competitive environment Introduction n recent years we have seen major changes in the business world, including deregulation, privatisation, the growing expectations of shareholders and the impact of new technology. These have led to a much more fast-changing and competitive environment that has radically altered the way in which businesses are managed. In this chapter, we consider some of the management accounting techniques that have been developed to help businesses maintain their competitiveness in this new era. We begin by considering the impact of this new environment on the full-costing approach that we considered in Chapter 10. We shall see that activity-based costing, which is a development of the traditional full-costing approach, takes a much more enquiring, much less accepting attitude towards overheads. We shall also examine some recent approaches to costing that can help lower costs and, therefore, increase the ability of a business to compete on price. Management accounting embraces both financial and non-financial measures and, in this chapter, we shall consider the increasing importance of non-financial measures in managing a business. These include the balanced scorecard approach, which seeks to integrate financial and non-financial measures into a framework for the achievement of business objectives. Finally, we consider the idea of shareholder value, which has been a ‘hot’ issue among managers in recent years. Many leading businesses now claim that the quest for shareholder value is the driving force behind strategic and operational decisions. We consider what the term ‘shareholder value’ means and we shall look at one of the main methods of measuring shareholder value. I Learning outcomes When you have completed this chapter, you should be able to: ● Discuss the nature and usefulness of activity-based costing. ● Explain how new developments such

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• Accounting for control
• Making capital investment decisions
• Financing a business
• Managing working capital
• Competitive environment
• Accounting for control