Cost Management
Strategies for Business Decisions
By: Ronald W. Hilton, Michael Maher, Frank H. Selto
Hilton/Maher/Selto (HMS) addresses traditional cost concepts, but makes cost accounting functional by focusing on measuring and managing costs. HMS maintains that, Costs don't just happen, and with a pro-active approach toward costs, accountants can add value to an organization. Faculty will appreciate the new and more conventional chapter organization in the first two sections of the text. The real-world approach of this text, including the use of focus companies and the new accompanying focus sites, provides a realistic business environment, and aids in student comprehension and interest in the subject.
AI Overview
Comprehensive Overview of "Cost Management: Strategies for Business Decisions" by Ronald W. Hilton, Michael W. Maher, and Frank H. Selto
Key Themes
Proactive Cost Management: The book emphasizes that costs do not just happen and that a proactive approach towards cost management is essential. Managers and accountants who understand cost implications can add significant value to an organization.
Decision-Making: The authors focus on teaching students to make decisions using cost management challenges. This is achieved through "You're the Decision Maker" boxes throughout each chapter and a simulation on the text website.
International Perspective: The book is an adaptation of the successful US text "Cost Management" and is written specifically for an international audience. It includes diverse and truly international examples of organizations from various countries and industries.
Cost Management Strategies: The book covers a wide range of cost management strategies, including activity-based costing systems, customer profitability, managing quality and time, and strategic investment decisions.
Performance Measurement and Management: It delves into performance measurement and management, including analysis and management of cost variances, organizational design, responsibility accounting, and transfer pricing.
Integral Use of Spreadsheets: The authors use spreadsheet software to explain techniques and make applications more realistic, enhancing the practicality of the book.
In-Depth Research: The book incorporates summaries of international research studies addressing important cost management issues and includes references to recent research findings.
Intuitive Explanation of Accounting: The authors provide an intuitive explanation of accounting principles, showing how events impact the balance sheet and profit and loss account.
Plot Summary
The book is structured into five parts, each focusing on a different aspect of cost management:
- Setting the Strategic Foundation: This part introduces the importance of analyzing and managing costs in strategic decision-making.
- Activity-Based Management: It covers activity-based costing systems, customer profitability, and managing quality and time.
- Planning and Decision Making: This section focuses on short-term decision making, strategic investment decisions, budgeting, and financial planning.
- Product Costing and Cost Allocation: It discusses job and order costing, joint product and process cost systems, and managing and allocating support service costs.
- Performance Measurement and Management: This final part includes analysis and management of cost variances, organizational design, responsibility accounting, transfer pricing, strategy, balanced scorecards, and incentive systems.
Critical Reception
As of the current information available, there are no specific reviews or ratings provided for this book on platforms like Goodreads. However, the book's adaptation for an international audience and its comprehensive approach to cost management strategies suggest it would be well-received by both instructors and students in the field of cost accounting and management.
Overall, "Cost Management: Strategies for Business Decisions" by Ronald W. Hilton, Michael W. Maher, and Frank H. Selto offers a detailed and practical guide to cost management, emphasizing both theoretical understanding and practical application. Its international focus and use of real-world examples make it a valuable resource for students and professionals alike.