Download Global Trend of Cost Accounting

‘Traditional Accounting Pricing Tools Are Not Fit For the 21st Century’
Page 1
Table of Contents
Introduction ..................................................................................................................................... 3
Definition of Price........................................................................................................................... 5
Characteristics of Modern Market Place......................................................................................... 5
Traditional Pricing Models ............................................................................................................. 6
How Firms Considers its Features .............................................................................................. 7
Drawback of Traditional Account Pricing Model ...................................................................... 8
Advantage of Activity Based Costing........................................................................................... 13
Meaning of Modern Pricing Methods ........................................................................................... 14
Global Trend of Cost Accounting ............................................................................................. 15
Advantage of Modern Pricing Tool .......................................................................................... 15
Conclusion and Recommendations ............................................................................................... 18
Recommendations ..................................................................................................................... 19
References ..................................................................................................................................... 22
Bibliography ................................................................................................................................. 28
Page 2
Introduction
Making optimum choice of the pricing objective along with its associated strategy can be
considered as one of the vital functions of the owners of the businesses. It also forms the
significant part of the overall business plan and therefore planning process. Assignment of prices
to the product can be considered one of the major strategic activities of the business. It is the
pricing of the product that differentiates the company’s product from that of the competitors
(Beke, 2011).
The marketer is required to consider few questions while determining the objectives as well as
strategies of pricing that can assist the firm in achieving success of its business. The first
question to consider is related to the mix of products that the company tends to offer. The
companies also need to consider who its target market is and if the product is being dispersed by
means of wholesale channel or retail channel. Pricing objectives are generally selected taking
into consideration the financial as well as business goals. ‘Profit margin maximization’ is
considered to be one of the most imperative pricing objectives. Few pricing objectives such as
fractional cost recovery, status quo and survival can be utilized during the times of poor market
conditions, when entering into new markets, or during the difficult times faced by the business.
A company that has other sources of income along with the sales of the product may choose to
make use of fractional cost recovery as one of the pricing objectives. Most of the time, it has
been observed that companies try to maximize their revenues by selling the products without due
consideration to profits (College of Agricultural Sciences, n.d.).
Page 3
Traditionally, numerous pricing tools were used such as cost plus pricing, transfer pricing,
absorption costing, Activity Based Costing (ABC) costing and marginal costing. However, in the
recent times the market is changing and thus the traditional modes of pricing techniques in the
modern marketplace tend to be quite ineffective. With the change in the structure of the
marketplace, it becomes significant to revise the pricing objectives so that the organizational
goals can be achieved within a stipulated period of time. Therefore, the modern methods of
pricing are applied such as target costing, value based pricing policies among others (Lockamy
III & Smith, 2000).
In this study, the main emphasis is to focus upon the ineffectiveness of the traditional accounting
pricing tools in the context of 21st century. The study will attempt to identify the characteristics
of the traditional market place and the modern market place. It will further try to demonstrate
what makes the traditional accounting pricing tools ineffective in the modern market place.
Numerous theories can help in gauging the significance of modern accounting pricing tools over
traditional accounting pricing tools.
Page 4
Definition of Price
Price can be referred to as an amount of money that any business corporation charges for a
particular product that it puts for sale. The price at which the business sells its products must
assist the firms to earn profits and therefore it must be sensible for any customers to pay. Price is
calculated using the general formula as [Price = Cost + Desired Profit] (Knowledge Matters,
2011).
Characteristics of Modern Market Place
Modern market is generally characterized as being consumer oriented and hence starts and ends
with the customers. The modern marketing precedes and succeeds production and is considered
to be a guiding element of business (Andhra University, 2009).
One of the significant differences among the modern market over that of the traditional market is
that the modern market sells the same product at relatively lower prices and also presents its
customers with goods with greater comfort and payment options (AgEcon Search, 2011).
Traditional marketing is considered to be narrower concept for the competitors as well as the
products as well. It tends to separate the concrete goods as well as services. In such marketing
aspect, all marketing-mix is customer oriented and thus believes on the principle of “StimulusReaction”. It is one of the biggest disadvantages from the perspectives of marketing mix since it
is narrower concept. However, the modern marketing generally considers customer as rational
Page 5
and emotional which means that consumers may not purchase the product solely based upon the
attractiveness of the product but also tend to acquire proper knowledge of the product along with
the related benefits attached to the product (Grundey, 2009).
The next section of the study tries to analyze the traditional pricing tools and its significance.
Traditional Pricing Models
After the firms have considered the numerous features involved in the pricing of the product and
determined the objectives, it becomes significant to identify the ways through which prices can
be calculated. There are numerous pricing methods in accounting which are considered as
traditional. A few of the methods are not much in practice and seems to be obsolete, however
they can serve to be significant methods in calculating the price of the products. Although most
forms advocate value-based approach to pricing, it has been observed that firms rely on the
traditional method such as cost-plus pricing methods and competition-based pricing. In cost-plus
pricing the supplier managers tend to add certain percentage while determining the cost
according to the knowledge of their own cost in order to arrive at the price that can be offered to
the market. In cost-plus pricing, it is generally assumed that the customer is concerned regarding
the supplier costs and the customer also considers the fact that the price of the product is
justifiable. The sellers do not feel comfortable selling the same products to distinct market at
different prices (Docstoc, 2011). In such circumstances, the value that the product offers to the
customer is not taken into considerations and as a result the suppliers tend to risk themselves by
being uncompetitive high priced or may as well give away the value by unknowingly offering to
Page 6
its customers. On the other hand, the competition-based pricing is different from that of the costplus pricing. In such pricing techniques, the supplier manager locates the price of the product
according to what the competitor has set. The price of the product may be exactly similar to what
the competitor has set or it may as well be slightly high or low because of the service differences,
status of the company and quality of the product (Anderson & Narus, 2004).
Although the standard cost accounting is seventy five years old, it is increasingly used by most
of the organizations in order to estimate worth of the inventory for the purpose of financial
statements and for other management related tasks. It might serve as an advantage for the
purpose of financial statements, but it is considered as misleading tool to help the firm in making
effective decision making. Standard cost accounting was basically designed for those companies
that had limited ability to collect the data, homogenous products, large direct costs in comparison
to indirect costs and low below the line costs (Chea, 2011).
How Firms Considers its Features
The companies of the modern times are found to be possessing wide range of products and
services, increased overhead costs in comparison to direct labor, huge amount of data and
extensive non product costs impacting the actual product, profit of the customer and distribution
channel. The modern marketplace is characterized to consist of high technology and high speed
data collection along with reporting tools. When the companies have access to such high tech
tools, use of traditional accounting tools becomes questionable. After the introduction of the
certified financial statements, the accounting systems have been prearranged in order to conform
to the needs of the external stakeholders. Along with it the overall objective of the cost
Page 7
accounting has altered with the changes in the other accountings. The principal objective of the
cost accounting systems in the modern times has been to value the stocks for financial statement
function and it is not as it was during the ancient times to assist as a tool for making sound
business decisions. The main drawbacks of the traditional cost accounting tools in assessing
business organisation are apparent. Since there is influencing effect of the direct labor overhead
application, there is continuous focus upon the direct labor reduction. The overhead cost
becomes so high for the companies that they try to grasp the last penny out from the direct labor
with the wrong assumption that even a single penny reduction will result to reduction in the
product cost. If the companies apply the overhead in an arbitrary manner, which tends to be one
of the biggest components of cost, then it signifies that the companies have very little knowledge
regarding the product cost. As most of the companies make use of cost in order to arrive at the
pricing to meet the objectives of the profit margin, the firms under such circumstances tend to
have very little or at times no knowledge regarding the true product profitability. It has often
been noted that the arbitrary cost leads to wrong make or buy decisions. By making wrong
predictions relating to which cost needs to be included while determining the price of the product
and which cost to be excluded during such process will actually increase the cost of the product
while the cost system predicts that cost will decline (Maher, 1997).
Drawback of Traditional Account Pricing Model
The main drawback of the traditional account pricing tools is that it does not apply overheads to
purchased materials, assemblies and parts that lead to deformation in projected cost reduction
analysis. It is because of the fact that overhead resources are utilized by distinct products as well
Page 8
as distinct product lines at considerably different rates; an alteration in the product mix might
lead to extensive cost alterations that cannot be accurately forecasted by the traditional account
pricing tools. It has further been observed that traditional account pricing tools tend to offer
limited knowledge ahead of material as well as direct labor to help the management to monitor
costs at the product level or below. Exploitation of the primary management information tool
such as variance takes place. The firms wanting to manage the variance may suffer from
numerous issues. Purchase price difference often makes the buyer to concentrate upon the price
and exclude the quality of the product or service which ultimately leads to additional costs
related to declining quality, cost of delays as well as cost related to high stocks. It has been
observed that the traditional account pricing tools fail to demonstrate the impact of sales,
distribution, marketing as well as customer cost upon the product as well as profitability related
to product line. The case under traditional account pricing tools may be such that it shows that
two customers are having the similar gross profit where as in reality the support cost of these two
customers may be different to a great extent (Maher, 1997).
The financial accounting system will be used by the management for its principal objectives
serving the external stakeholders while the other branch of accounting, namely the management
accounting will serve the organizations by providing significant information so that the firms can
operate effectively and hence can be improved to a greater extent. Financial accounting by its
nature is historic and therefore all the pricing tools practiced under such system tend to be
traditional. On the contrary, management accounting tends to be analytical in nature (Tarr,
2004).
After noting the drawbacks of traditional account pricing tools that was identified between the
Page 9
years 1997-2004, there has been extraordinary recovery of interest in the practice and the theory
of cost and management accounting in the modern times (United Nations, 2001).
There are two factors that are basically responsible for this resurgence. The first factor is related
to changes that have arisen in the business environment because of the competition in the global
economy that has fastened the ace of the technological change. There has also been economic
deregulation of the industries in most of the nations. It is because of such alterations that have led
to pressures and creating harms on the organization as well as management of the businesses
along with their cost and management accounting systems. The three significant drawbacks of
the traditional account pricing tools are that they tend to be irrelevant as well as harmful for the
business, they are quite costlier to maintain and they tend to divert the managements decision
from vital matters. It is often observed that the managers are forced to achieve short-term
objectives by minimizing the expenses related to training and investments or may be asked to
increase the level of stocks. Although these strategies prove to be effective in the short run, they
may hamper the future results badly. The five significant problems related to the cost accounting
can be classified under five different headings. They are lack of relevance, inappropriateness
with lean thinking, cost decline, rigidity and inappropriate links to financial accounts (Hanid,
2011).
The various traditional account pricing tools such as marginal pricing, absorption and transfer
pricing have been studied in brief in the section below.
Marginal Costing
Marginal costing is also considered as one of the traditional means of pricing the products. It
Page
10
tends to differentiate between two important costs such as the fixed costs as well as variable
costs (Globusz, 2011). By definition, marginal costing can be defined as the “the accounting
system in which variable costs are charged to cost units and the fixed costs of the period are
written-off in full against the aggregate contribution. Its special value is in decision making”
(Globusz, 2011).
Page
11
Absorption Costing
Absorption costing is also known as full cost method. In the context of absorption costing, the
firms consider the manufacturing cost, variable cost as well as fixed as cost of production and
therefore these are used for the purpose of determining the cost of goods manufactured and
inventories. In this technique the periodic profit is affected by alteration in the inventory along
with volume of sales and the profit becomes the function of production instead of sales. One of
the main drawbacks of the absorption costing is that it does not assist in the managerial decision
making process (Bhattacharyya, 2011).
Transfer Pricing
Transfer pricing is the term which is used for the price which is charged by the related business
houses to one another for their goods and services. The business houses may be positioned in the
same country but the tax authorities are concerned with the transfer pricing where the enterprises
are located in different countries. If there is no transfer pricing legislations in any country, then it
becomes easier for the multinational enterprises to transfer their profits to any other country. The
main reason behind the shift in the profit from one nation to the other is to avail the benefits of
difference in tax rates (Harrowven, 2010).
Activity based Costing
It can be argued that the activity based costing came into being in the year 1980s because of the
irrelevance of the traditional cost accounting methods. It is of greater significance to note that the
traditional cost accounting methods were developed during the 1870–1920, when the industry
used to be labor-intensive by their nature. The industries lacked automation system and there
Page
12
were few product varieties. Along with these the overhead costs were also quite less in
comparison to what it is today (Myers, 2009).
There have been raid changes in these trends since the 1980s. This is the reason behind the
obsoleteness of the traditional cost accounting methods. The lacuna in the traditional cost
accounting methods have been effectively dealt with by the activity cost based accounting. It has
been considered as one of the significant management innovations. The vital dissimilarity that
one gets to note between the activity based costing and traditional cost accounting methods is
that in the context of traditional cost accounting methods, there is an assumption that cost does
not take into account consumed resources and in the context of activity based costing, it is
generally assumed that costs do not take into consideration consumed activities. Activity based
costing endorses decision making on products investigating the product life cycle as per the
activity based management and activity based management accounting. In traditional cost
accounting, the quantity related allocation bases are used where as in the activity based costing,
drivers are used at numerous levels. The traditional cost accounting is generally structure-based
where as the activity based costing is generally process-based (Maharshi Dayanand University,
2004).
Advantage of Activity Based Costing
The significant advantage that the firm receive by adopting the activity based costing methods is
that it tends to provide the firms with numerous measures in order to improve the productivity.
Since the activity based costing is generally process oriented and therefore collects the
information from the processes it can be used for the purpose of identifying what needs to be
Page
13
done and effective allocation of the resources. It is the modern pricing tools such as activity
based costing that can help the management to match the resources along with the capacities as
closely as it is possible and therefore the productivity can be enhanced to greater extent. On the
other hand, the structured oriented approach belonging to traditional cost accounting tools
provides no decision support while assigning capacity to match the needs of the resources. The
ineffectiveness of the traditional cost accounting method is evident from the fact that it leads to
cost inefficient organisation and also does not help the organization to generate higher revenues
(Emblemsvag, 2010).
Now, it is significant to study the modern pricing tools in detail and it is also significant to
identify its significance in the modern day context.
Meaning of Modern Pricing Methods
It is because of the globalization as well as high competition there is requirement of managing
the cost in a strategic manner. The issues relating to financial feasibility as well as value creation
has gained lots of significance in the modern marketplace. It is because of these reasons it
becomes vital for the business houses to think of certain innovative ways to administer the cost
so that they can beat the competition (Lockamy III & Smith, 2000). In order to meet such
objectives most of the business organizations make use of the contemporary cost management
tools such as target costing, Japanese management tool, lifecycle costing, value chain analysis
and value based costing among others so that they can remain competitive edge in the market
place and thus create more value (Indian Institute of Management Kozhikode, 2008).
Page
14
Global Trend of Cost Accounting
The debate related to application and future of the cost accounting as well as management in the
21th century has gained huge attention among the academics and practitioners in the development
of new cost management techniques as well as approaches. It was found that the traditional
pricing tools were incapable of meeting the emerging needs such as performance measurement,
cost control as well as cost management, operational control product costing objectives,
assessment of the relation between firm’s strategy as well as design of information systems
among others. It is because of the emerging competition that has forced the accounting to move
to cost management and therefore forms the essential part of the planning as well as control
system of manufacturing processes. In addition to that under these views, cost management can
be viewed as collection of the techniques and processes endorsing decision making. In order to
locate the solution to the problem faced because of the inefficiency of the traditional accounting
pricing tools the researchers as well as the practitioners have agreed with the notion that for
fulfilling the complex needs, it is quite significant to select a wider range of possible solutions
(WBDG, 2001).
Advantage of Modern Pricing Tool
The life cycle costing and the target costing stimulates the value of the firm and minimizes cost
of products all through the product life cycles and emphasize upon the scope of cost reductions.
The total cost of ownership takes into account the total cost of the supply chain, examines the
procedure within the firm as well as the association among the suppliers and the customers in
terms of control as well as management cost (WBDG, 2001). There are numerous other tools as
Page
15
well that have been proven as effective tools which help in sustaining cost reductions. Such tools
are value engineering, quality function deployment, cost table, design for manufacturing and
assembly as well as variety reduction program (Collini & et. al., 2002).
Target Costing
According to the definition provided by the CIMA Official Terminology, “a target cost can be
identified as a product cost estimate which is obtained by deducting a desired profit margin from
that of the competitive market price (CIMA Global, 2005).
Target costing is one of the significant techniques that were instigated in Japan’s manufacturing
industry in the beginning of 1970s. It was because of the rising demand of the customer for
diversified products as well as shorter product life cycles that conferred more significance to the
development and planning phase. During that period, it was also noted that there was the
production processes which were highly automated and the trend of declining labor cost was on
rise which made the standard costing quite ineffective as the prime method of cost management
among the manufacturing firms (Wijewardena & Zoysa, 1999).
Target costing is a cost management method that can assist the firms in dropping the total cost of
the product throughout its life cycle with the assistance of the production, R&D, marketing as
well as accounting department (CIMA Global, 2005).
Japanese Management Accounting
It has been observed that management accounting practices place greater focus upon the cost
Page
16
control tools and techniques during the manufacturing stage. However, the Japanese companies’
place greater emphasis to cost planning as well as cost reduction techniques at the product design
phases itself (Wijewardena & Zoysa, 1999).
The Japanese firms focus is generally at the cost design as well as cost improvement for the
purpose of internal control as well as market strategy. The basic approach in the context of
Japanese management accounting system is upon low cost as well as high quality (Kumarasinghe
& Willett, 2009).
Value Based Accounting Tools
Value based accounting tool is considered as one of the significant tools in the modern
marketplace used by the accountants to determine the price of the product. In such pricing
system, the price of the product is set at the professed value of the customer. This pricing tool
does not take into deliberation the cost of the product and the market price. It results in high
prices as well as profits for those companies that can make their customers concur to pay the
price as set by them. The main advantages of this pricing method are that it helps to enhance the
profits of the companies and thereby increase the customer loyalty to a greater extent. However,
the main disadvantage of this pricing is that the company that engages itself in such pricing
technique allows the competitor to offer their goods at relatively lesser cost and therefore take
away the market share (Ishikawa, 2003).
Page
17
Conclusion and Recommendations
The organizational environment is featured by expanding use of advanced technology and it has
become quite intricate in the recent times. It is essential for the management accounting system
design elements to capture the underlying technology, by unswerving with the corporate
obligations to total quality and augmented automation and therefore promote their efforts for
competing on the basis of cost, quality along with lead time. It has been revealed by the
literatures that traditional systems of accounting are outdated. It is often viewed that traditional
cost system tends to introduce product cost deformation which does not assist in preparing
proper strategic decisions. The traditional account pricing tools of the conventional times are
incapable of reflecting the recent organizational realities since classic product costing procedures
were developed during the late nineteenth as well as early on twentieth century’s. During those
times, the prime cost of direct material as well as direct labor was the main elements of
production cost and the product line diversity were not much common. However, in the recent
times, it has been observed that the production environment has become automated and therefore
the indirect cost has made the true prime cost to become overhead component. The rise in the
relative amount of overhead cost is warping product cost. The reason is because of the traditional
account pricing tools for assigning the overhead to product lines.
It has been proposed by numerous practitioners that an effective pricing tool is one in which the
budgets are aligned with the strategies of the organisation, adequate strategic planning as well as
performance management are in process and the processes need to be value based, substantial as
well as incessant. The traditional account pricing tools tend to be quite time consuming and
Page
18
therefore tend to promote internal politics.
The traditional account pricing tools or the manner in which they are implemented has been
disparaged as being insufficient for the purpose of making decisions. Traditional account pricing
tools are not bad. However, it is due to the ineffectiveness of the traditional account pricing tools
such as cost plus pricing, marginal pricing, absorption costing, and transfer costing among other
which makes them obsolete. In the competitive environment, it becomes significant for the
business houses to meet the changing needs and demands of the modern marketplace. In light of
this fact, it has been observed that the traditional account pricing tools thus endorsing the
managerial work are under tremendous pressure to change so that they can rapidly meet the
needs and the wants of the changing business environment. The management accounting has
undergone tremendous change and as a result various new pricing tools have been prepared such
as activity based costing, Japanese management accounting, target costing and value based
costing among others.
Therefore, it can be concluded that the traditional account pricing tools are quite ineffective in
the modern day context and therefore they need to be revised properly by the accountants.
Recommendations
It can be however stated that although the traditional methods of pricing has been conceived as
being inaccurate and no longer of greater significance in the modern marketplace to the
accountants, a few of the analysts mention that traditional pricing tools have not lost its rights to
exist. Instead, one of the facts that are generally overlooked by the accountants or the
Page
19
management is that the data structure which is necessary or required in by the new accounting
pricing tools is present in the traditional account pricing tools. In order to make the traditional
accounting pricing tools effective, it is significant for the organization to view the changes
occurring in the marketplace quite closely. It is highly recommendable for the organizations to
implement traditional account pricing tools as a tool for controlling cost at a very initial stage.
The significance of the traditional account pricing tools as one of the significant management
tools tends to decline when they are used in the fields where the cost cannot be influenced
(Offenbacker, 2004).
A few of the companies still perceive the traditional account pricing tools to be significant.
Nonetheless, the new management system such as strategic planning along with transfer pricing
are considered as less significant. However, the traditional account pricing tool seems to have
outdated and cannot be used for in the modern day context in day to day activities. Therefore, it
is quite vital for the firms to focus upon the ways through which the traditional account pricing
tools can be enhanced and can serve the changing needs and demands of the modern marketplace
(Uyar, 2010).
It is quite significant to make use of the modern pricing tools so that it can be suitable for the
modern market place which has been characterized as possessing global market, with customers
increasing wants and demands and their focus upon high quality with low cost. Traditional
methods must be enhanced in a manner so that the methods can help in effective decision making
(Fowzia & Nasrin, 2011).
The accountants must be provided with adequate training so that they can develop the traditional
cost accounting pricing tools. The complexity needs to be reduced and the other limitations
Page
20
posed by the traditional account pricing tools need to be minimized. Along with these, the
advantages of such pricing tools need to be spread in the organization so that they are used by the
entire organization in an effective manner
Page
21
References
Anderson, J. C. & Narus, J. A., 2004. Business Market Management: Understanding, Creating
And Delivering Value, 2/E. Pearson Education India.
Andhra
University,
2009.
Introduction.
Market.
[Online]
Available
at:
http://www.scribd.com/doc/37627410/10/Four-Basic-Features-of-Modern-Marketing [Accessed
December 13, 2011].
AgEcon Search, 2011. Modern Food Retailers And Traditional Markets In Developing
Countries: Comparing Quality, Prices, And Competition Strategies In Thailand. Super Markets.
[Online] Available at: http://ageconsearch.umn.edu/handle/108348 [Accessed December 13,
2011].
Bhattacharyya, D., 2011. Management Accounting. Dorling Kindersley.
Beke, J., 2011. “Comparative Analysis in International Accounting Information Systems”,
International Jr. Finance and Accounting. Vol: 1, Iss: 1.
Page
22
College of Agricultural Sciences, No Date. Understanding Pricing Objectives and Strategies.
FreePubs. [Online] Available at: http://pubs.cas.psu.edu/freepubs/pdfs/ua441.pdf [Accessed
December 13, 2011].
Chea, A. C., 2011. “Activity-Based Costing System in the Service Sector: A Strategic Approach
for Enhancing Managerial Decision Making and Competitiveness”, International Journal of
Business and Management Vol. 6, Iss: 11. Pp: 3-10.
Collini, P. & et. al., 2004. Sense Making In Target Costing. Abstract. [Online] Available at:
http://knowledgeweb.semanticweb.org/o2i/scenarii/TechnologyProvider/TechnologyProviderRes
earchChallenges3.pdf [Accessed December 14, 2011].
CIMA Global, 2005. Target Costing in the NHS Reforming the NHS from Within CIMA NHS
Working
Group.
Executive
Summary.
[Online]
Available
at:
http://www.cimaglobal.com/Documents/ImportedDocuments/ReformingtheNHSfromwithin.pdf
[Accessed December 14, 2011].
Docstoc, 2011. Chapter 9: Product Differentiation and Pricing Strategies. Learning Objectives.
Page
23
[Online]
Available
at:
http://www.docstoc.com/docs/14792167/CHAPTER-5-PRODUCT-
DIFFERENTIATION-AND-PRICING-STRATEGIES [Accessed December 15, 2011].
Emblemsvag,
J.,
2010.
ABC.
Traditional.
[Online]
Available
at:
http://www.emblemsvag.com/abc.htm [Accessed December 14, 2011].
Fowzia, R. & Nasrin, M., 2011. “Appraisal Of Cost Management Tools In Manufacturing
Organisation In Bangladesh”, World Journal Of Social Sciences. Vol: 1, Iss: 2, pp: 83-94.
Grundey, D., 2009. “Experiental Marketing Vs. Traditional Marketing: Creating Rational And
Emotional Liaisons With Consumers”, The Romanian Economic Journal. Vol: 29, Pp: 133-151.
Globusz,
2011.
Introduction.
Marginal
Costing.[Online]
Available
at:
http://www.globusz.com/ebooks/Costing/00000012.htm [Accessed December 13, 2011].
Harrowven,
D.,
2010.
Transfer
Pricing.
Publication.
[Online]
http://www.acca.co.uk/members/publications/accounting_business/CPD/trans
Available
at:
[Accessed
December 14, 2011].
Hanid, M., 2011. Suggested Solutions. Traditional Cost Management Vs. Lean Cost
Page
24
Management.
[Online]
Available
at:
http://salford.academia.edu/MahanimHanid/Papers/380806/Traditional_Cost_Management_vs._
Lean_Cost_Management [Accessed December 14, 2011].
Indian Institute of Management Kozhikode, 2008. Strategic Cost & Performance Management.
Management
Development
Programme.
[Online]
Available
at:
http://www.iimk.ac.in/mdp/MDP08/MDP07.php [Accessed December 14, 2011].
Ishikawa, J., 2003. “A Social Science Of Contemporary Value-Based Accounting: Economic
Foundations Of Accounting For Financial Instruments”, Critical Perspectives on Accounting.
Vol: 16, Iss: 2, pp: 115-136.
Kumarasinghe, S. & Willett, R., 2009. What Can Management Accounting Practitioners And
Academics Do To Improve Risk Measurement And Forewarn Of Impending Financial Crises?
Business
Managers
And
Accounting
Research.
[Online]
Available
at:
http://otago.ourarchive.ac.nz/bitstream/handle/10523/1550/17_Kumarasinghe_Sriya_APJMAPle
naryPaper_151209_Fin.pdf [Accessed December 14, 2011].
Knowledge Matters, 2011. An Education Your Student Will Love. Knowledge Matters. [Online]
Available at: http://www.knowledgematters.com/ [Accessed December 13, 2011].
Page
25
Lockamy III, A. & Smith, W. I., 2000.”Target Costing for Supply Chain Management: Criteria
and Selection”, Industrial Management & Data Systems. Vol: 100, Iss: 5, pp: 210-218.
Myers, J. K., 2009. “A Field Study in a Defense Electronics Manufacturing Company”,
Proceedings of ASBBS. Vol: 16, Iss: 1.
Maher, M., 1997. Solution for Cost Accounting. University of California. [Online] Available at:
http://atlas.kennesaw.edu/~cwaits1/MAHER.PDF [Accessed December 15, 2011].
Maharshi Dayanand University, 2004. Accounting Theory. Financial Reporting. [Online]
Available at: http://www.scribd.com/doc/40889728/Accounting-Theory [Accessed December 15,
2011].
Offenbacker, S., 2004. “Introduction: Marginal Costing As A Management Accounting Tool”,
Management Accounting Quarterly.
Tarr, J. D., 2004. Traditional Costing Today. Activity Based Costing. [Online] Available at:
Page
26
http://www.theacagroup.com/activitybasedcosting.htm [Accessed December 14, 2011].
United Nations, 2001. Environmental Management Accounting: Policies and Linkages. Abstract.
[Online]
Available
at:
http://www.un.org/esa/sustdev/publications/policiesandlinkages.pdf
[Accessed December 15, 2011].
Uyar, A., 2010. Cost and Management Accounting Practices: A Survey of Manufacturing
companies. Eurasian Journal of Business and Economics. [Online]
Available at:
http://ejbe.org/EJBE2010Vol03No06p113UYAR.pdf [Accessed December 15, 2011].
Wijewardena, H. & Zoysa, A. D., 1999. “A Comparative Analysis of Management
Accounting Practices in Australia and Japan: An Empirical Investigation”, The International
Journal of Accounting, Vol: 34, Iss: 1, pp: 49-70.
WBDG, 2001. Sustainable Federal Facilities. A Guide to Integrating Value Engineering, LifeCycle
Costing
and
Sustainable
Development.
[Online]
http://www.wbdg.org/ccb/SUSFFC/fedsus.pdf [Accessed December 15, 2011].
Page
27
Available
at:
Bibliography
Levy, M. & Et. Al., 2007. “Emerging Trends In Retail Pricing Practice: Implications For
Research”, Internet, Retail and Marketing.
Whittington, G., 1992. The Elements of Accounting: An Introduction. Cambridge University
Press.
Page
28