Sorry, no essay in English

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Sorry, no essay in English

Purpose In 14, the Office of the Assistant Secretary of Defense, Director of

Defense Information, issued the Framework for Managing Process Improvement, A

Guide to Enterprise Integration, providing Department of Defense functional managers

Online essay help on Sorry, no essay in English

with the processes and procedures that should be applied when conducting

process improvement projects throughout the DoD. Since that time there have

been various publications, policies and instructional material developed. This

handbook is a further development of the methodology, procedures, and principles.

Scope Activity accounting is a fully inclusive management information concept

which includes the total spectrum of accounting controls, reports and analysis.

It is oriented on the activity structure of an organization rather than on the

formal departmental or organizational format. The process provides quantitative

activity-based cost information to

ï assess continuing operations and project future impacts for a mature activity-

based organization.

ï evaluate selected process flows, relative cost of various activities, and potential

effects of modifications.

ï analyze alternative process flows with comparative economic evaluation.

Experience has shown that an evaluation using purely qualitative judgement

of possible alternatives and change opportunities is woefully inadequate to demonstrate

the full potential of meaningful improvements, particularly in an environment

where dollars and work hours are a major determinant of performance and

efficiency. It is the quantitative characteristics of activity-based costing that make

it a key component of the analysis and evaluation process and improve the quality

of the final decisions. This means that it cannot be ignored even if it is performed

in a perfunctory manner.

The major difficulty in using activity-based costing has been the variance of

the practices, methods, definitions, procedures, and standards applied under it.

This guidebook is specifically designed to resolve this void and to provide guidance

to those embarking on a redesign effort.

Chapter 1 Introduction to Activity-Based Costing

What is ABC?

ABC is an essential part of the functional process improvement and

reengineering effort. It captures quantified cost and time data and translates this

into decision information. ABC measures process and activity performance, determines

the cost of business process outputs, and identifies opportunities to improve

process efficiency and effectiveness. Qualitative evaluation and determination

alone is totally inadequate as a single measure of improvement. Though quality

might determine ìbetterî, it does not contribute to other meaningful decisions

such as what is ìcheaperî and ìfasterî. It is the integration of these two dimensions

that is the critical decision support element of the total process. ABC is the

mechanism to integrate these two views.

with particular emphasis on the practical use of Activity-Based Costing (ABC)

within DoD, and is intended to be used by DoD personnel in conjunction with the

current published guidance and policy of the DoD. It is important to note that this

guidebook, while intended for DoD use, is based on solid, industry-wide principles

of Activity-Based Costing and therefore can be used by other (non-DoD) governmental

agencies and private sector enterprises.

This is a practical handbook for use during a functional process reengineering

or improvement project. It will provide empirical guidance and suggestions on the

basics of how to plan for, implement, and apply activity-based costing in evaluating

and analyzing process flows and in performing a functional economic analysis

of alternative courses of action. Sorry, no essay in English

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