Although there are numerous books on alternative accounting methods, such as Lean accounting, none focus on the impact of time and how accounting practices can be modified to acknowledge the power of time. This book addresses this need. The Monetary Value of Time: Why Traditional Accounting Systems Make Customers Wait presents a framework for assessing the value of time in terms of organizational strategy and competitive advantage. The framework presented will enable organizations to develop consistent measures and ensure that their cost accounting system isn't motivating behaviors that add to lead time and make customers wait. The framework outlined in this book is relevant to the managerial and cost accounting practices in today's manufacturing environment, which is increasingly moving away from mass production to custom manufacturing. The framework is supported by high-level metrics, which are reinforced by operational metrics. This is supported by accounting data that recognize the value of time. Pricing models that incorporate the concept of time are presented. The book provides many examples of how the use of standard costing and traditional accounting practices in a high-mix/low-volume production environment can produce contradictory or even inaccurate results that form the basis for poor decisions that may actually move your organization farther from its objectives. The book arms readers with options for overcoming traditional barriers by applying direct costs at an item level, while applying overheads at a macro or value stream level. For example, while GAAP requires overhead application for inventory valuation, a common misconception is that overhead must be applied at an item level. In fact, overhead can be absorbed by one journal entry. Demonstrating the linkages between time-based accounting data and meaningful business metrics that drive bottom line results, the book presents methods and metrics that have been successfully applied by the author in manufacturing environments.
Introduction Net Present Value: Just the Tip of the Iceberg Velocity Improves Productivity and Working Capital Measuring Lead Time Measuring Velocity Case Study: Velocity Impact on Results Product Cost The End and the Means: Why Do We Cost Products? Absorption versus Variable Costing Standard Cost Activity-Based Costing: Is It Really as Easy as ABC? Lean Accounting and Value Streams Theory of Constraints and Throughput Accounting Time-Based Accounting (TBA) Absorbing Costs on a Macro Level Eliminates Allocations What Does GAAP Have to Do with It? What GAAP really requires (and it's not standard cost) Variation, or Stuff Happens Variation Fallacy of Scheduling Models in Enterprise Resource Planning Mathematics Can Provide Useful Insights Modeling Your Value Stream Labor: Direct or Indirect? Cross-Trained or Specialized? Simplified Time-Based Accounting Make or Buy Decisions Cell Contribution Sample Contribution Financial Statement Presentation Incremental Contribution Pricing Strategies under High Mix/Low Volume Why Gross Profit Is a Poor Predictor of Profit Contribution? Why Margins Are Poor Predictors of Results? Contribution Pricing? Setup Cost, Batch Sizes, and Volume Discounts Is Inventory a Liability or an Asset? More on Simplified Time-Based Accounting Stop Absorbing Overhead and Eliminate Standard Cost Variance Reporting Feedback Loops Replace Variance Analysis with Improvement Activities Simplify Bills of Material Simplify Material Simplify Labor Simplify Overhead Sample Inventory Entries Time-Based Metrics What Is Wrong with Utilization? What Is Wrong with Efficiency? How about Overall Equipment Effectiveness (OEE)? Metrics for Time-Based Systems Time-Based Cost Justifications Spare Capacity Planning for Equipment Spare Capacity Planning for People Time-Based Justification Template Time-Based Justification Examples A Road Map for Implementing Time-Based Accounting Making Customers Wait References Index
(0 Comentarios)
