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Critique of Technological Innovations, Activity Based Costing and Satisfaction Article by Davood Askarany - Term Paper Example

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"Critique of Technological Innovations, Activity Based Costing and Satisfaction Article by Davood Askarany" paper analyzes the article which reviews whether the implementation of ABC is related at all to the level of technological advancement, and what is the satisfaction level of the company officers. …
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Critique of Technological Innovations, Activity Based Costing and Satisfaction Article by Davood Askarany
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Extract of sample "Critique of Technological Innovations, Activity Based Costing and Satisfaction Article by Davood Askarany"

Download file to see previous pages Many of the innovations have been introduced as early as 1980, such as “activity-based costing (ABC); activity management (AM) and activity-based management (ABM); local information system (LS); balanced scorecard (BS); life cycle costing (LCC) and target costing (TC) [and] strategic management accounting (SMA).” (Askarany, Smith and Yazdifar 54). However, few of these have been implemented and utilized to their full potential. The authors propose to find a reason for this.

ABC focuses on costs associated with activities, but also evaluates whether those activities add value, thus providing a means of understanding how to most effectively reduce costs. In addition to cost reduction benefits, applying ABC gives managers a sound means of monitoring ongoing performance (Maiga and Jacobs)

Also, the other objective is to discover the level of satisfaction that organizations have with the information and figures they have been receiving from their current level of accoutring sophistication.
Key issues considered: There are two main issues this paper review and researches: one, whether or not the implementation of ABC is related at all to the level of technological advancement within a company, and two, what is the satisfaction level of the officers of the company as regards the level of reporting and accuracy with or without the implementations of ABC, is their a difference? The overall issue is whether or not a balanced scorecard is accurate and available for the company to review in light of the advances or lack thereof in the accounting department.

Inherent in the balanced scorecard management model is an understanding that production and service problems generally cannot be addressed with simple, patchwork solutions but require a hard-nosed assessment of how the entire "chain of value" might contain complex problems that cut across several functions and, therefore, cannot be solved by departments working independently. (Davig, Elbert, and Brown)  ...Download file to see next pagesRead More
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