MANAGEMENT PLANNING AND CONTROL
FOUR DIMENSIONS IN THE
MODELING BUSINESS
The latest survey found That Management Accountants
spend more time in strategic planning issues than before. Determination of the
business model of the big picture, and consists of the formulation,
implementation and evaluation of long-term business plan of a company. It
includes four games dimensions.
1. Identify the
major factors relevant to the company's progress in the future.
2. Formulate an
adequate technique to predict future developments and analyze the company's
ability to adapt or take advantage of these developments.
3. Develop data
sources for support strategic choices.
4. Certain choices
translate into a series of specific actions.
THE DIFFERENCE BETWEEN
STANDARD COST CONCEPT AND KAIZEN
Determining
the standard cost system tries to minimize the variance Between budgeted costs
with actual costs. Kaizen Costing stressed to do what is Necessary to Achieve
the Desired levels of performance in a competitive market conditions.
The concept of Standard Costs:
- cost
control
- Applied
to existing manufacturing conditions
- Goals:
compliance with performance standards
- Standards are
determined each year
- Analysis
of variance based on actual vs. standard
- Investigate if
the standard is not met
The concept of Kaizen Cost:
- cost
reduction
- Applied
to manufacturing improvements on an ongoing basis
- Objective:
To Achieve cost reduction targets
- Target cost
reduction is determined each month
- Analysis
of variance based on a constant cost reduction
- Investigate if
the target is not Achieved cost