|
MANAGEMENT AND ACCOUNTING WEB |
| Introduction | Main Topics | Bibliography | Books | Journals | Textbooks | Marketplace | Links | Software |
| Contents | Search maaw | Summaries | Maaw's Book | Featured Pubs | Grad Course | Maaw's Blog | Gadgets | Videos |
|
McNair, C. J. 1990. Interdependence and control: Traditional vs. activity-based responsibility accounting. Journal of Cost Management (Summer): 15-23. Summary by Brenda Okulski |
Purpose of Article
To show how organizational interdependence changes the assumptions underlying traditional responsibility accounting and how an activity based accounting system more closely matches the demands of interdependence.
Activity-based Costing
Interdependence and the Organization
|
TIME |
Throughput Time Continuous Improvement |
Measuring move, queue,
setup, inspect and process times |
|
STRUCTURE |
Horizontal / Vertical Controls Cell Configurations |
Group incentives Standardizations-product families |
|
PROCESS |
Remove buffers Explicitly linking activities |
"Stop & fix" replaces "run & sort " Concurrent design, team orientation |
|
CONTROL |
Activity rather than individual focus |
Activity based responsibility accounting |
Interdependence and Responsibility Accounting/ Redefining Control
Adopting a Database Approach
Identifies interrelated activities à then attaches costs à then charges back to process/product.
Looking Forward
| ABC Main Page | ABM Main Page |
| Cost Management Main Page | Responsibility Accounting Main Page |