EXPLICIT COST DYNAMICS -- Contents -- CHAPTER 1 LIMITATIONS OF COST ACCOUNTING -- Improving Profitability -- Management Competence -- Need to Account for Costs -- Impact of Standard Costing on Operations -- Activity-Based Costing -- Need for Nonallocation Cost Management -- CHAPTER 2 WHAT IS EXPLICIT COST DYNAMICS? -- What Does the Name Explicit Cost Dynamics Mean? -- Nonallocation Cost Management -- Explicit Costs and Implicit Costs -- Explicit Cost Dynamics Cost Definitions -- Why is ECD Necessary? -- CHAPTER 3 UNDERSTANDING EXPLICIT COST DYNAMICS COSTS -- Cost Dynamics -- Cost Types -- Total Cost -- Total Cost as a Multidimensional Function -- Managing Total Cost -- Objective of Cost Management -- Costs Must Still Be Reduced -- CHAPTER 4 PROFIT DYNAMICS -- System Dynamics and Time -- Explicit Profit Dynamics -- CHAPTER 5 BASIC EXPLICIT COST DYNAMICS MEASURES -- Traditional Approach -- Progressive Approach -- Activity-Based Costing Approach -- Who Is Right? -- Allocation -- Can the Unit Price Be Determined? -- Objective of Cost Management -- Explicit Cost Dynamics Measures -- Cost Recovery Ratio -- Program Margin -- Answer to the Example Using the ECD Approach -- CHAPTER 6 DEGREE OF FREEDOM MANAGEMENT -- Related Activities and Causal Relationships -- Degree of Freedom Management -- What Is a Degree of Freedom? -- Creating and Destroying Degrees of Freedom -- Coupled and Decoupled Decisions and Program Justification -- CHAPTER 7 OPERATIONAL INCONSISTENCIES -- Learning and Experience Curve -- Economies of Scale -- Optimum Order Quantities -- Machine Utilization and Efficiency -- Operation Balancing -- CHAPTER 8 RESOURCE AND PROGRAM MANAGEMENT -- Resource Costs -- Resource Cost Dynamics -- Program Costs -- Program Types -- CHAPTER 9 PRACTICAL USE -- Time -- Time and Operations Improvements -- Addressing the Potential Danger of Transfer Costing.

Product and Service Rationalization -- Outsourcing and Make Versus Buy -- Product Pricing Considerations Using CRR -- CHAPTER 10 IMPLEMENTING EXPLICIT COST DYNAMICS -- Organization -- Programs -- Cost Management -- Systems and Technologies -- Ensuring a Successful Implementation -- INDEX.

GETTING TO THE BOTTOM OF THE BOTTOM LINE Traditional cost management systems typically defeat their own purpose by leading corporations to make decisions that ultimately do not optimize performance. These systems are the foundation for decisions that are made throughout the corporation. In order for organizations to increase performance beyond current capabilities, a new approach is needed that addresses issues such as understanding the true impact of various actions on the bottom line-and eliminating methods that distort numbers and narrow options. Explicit Cost Dynamics (ECD) offers such an alternative, and this expertly written, revolutionary book provides an indispensable introduction to the subject. Informative and easy-to-read, Explicit Cost Dynamics:Provides an alternative view and understanding of the impact of costs, actions, and time on the bottom line of a corporationExplains how this new theory can lead to an overall profit maximizationShows that costs can be considered as either a function of activities performed, as a function of resources expended, or of timeShows that the difference between explicit dollars flowing into and out of a company is equal to the rate of change of cash. . . and much more to help CEOs, CFOs, controllers, cost managers, financial managers, and others involved in the decision-making process improve their organizations' overall bottom lines.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2018. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.