Planning quality cost expenditures

Article Abstract:

Computation of expenditures on quality management requires careful thought on facts regarding its estimation. The measurement of the direct tradeoffs between voluntary and involuntary quality expenditures is not an easy task. Accountants are usually left to make subjective valuations which are not appropriate means of analyzing the effectiveness of expenditures. This could only result to unfit recommendations. Also, a graphical depiction of quality cost curves shows that the optimal level of tradeoff can not be correctly estimated. Also, this optimal point is not normally a stable variable owing to continuous process enhancement and reduction of quality cost spending. Lastly, it should be noted that a considerable quality improvement may only increase customer satisfaction but not short-term profits.

Evaluation, Quality control

---

A government cost control program for private industry

Article Abstract:

The US Army's use of the Office of Management and Budget's (OMB) Circular number A-76 saved taxpayers over $400 million. The circular was applied by the Forces Command Management Engineering Activity (FORMEA) at Fort Drum, NY. Procedures outlined involve conducting cost comparisons, using both in-house estimates and outside bids. Classes of costs covered include: personnel, materials and supplies, overhead, federal tax, one-time conversion expenses, and conversion differentials. Management should consider ways of maintaining staff morale and motivation when vigorous cost reduction efforts such as those used at FORMEA are applied. Pressures to cut costs can also result in postponement of activities such as routine maintenance.

Methods, Laws, regulations and rules, Finance, United States. Army, Cost control, United States. Office of Management and Budget

---

Running actual costs vs. standard costs

Article Abstract:

A method of harmonizing accounting with changes in technology and work environment is substituting running actual costs for the use of standard costs in the evaluation of performance and production costs. Running actual cost accounting has the advantages of: meshing with the concept of continuous improvement; facilitating the measurement of non-monetary productivity; and the accurate delineation of actual costs on a real-time basis. Managerial accountants believe that running actual costs provide better information than standard costs because they are: more accurate and current; more useful to pricing decisions; and easier to understand.

Analysis, Managerial accounting

Similar abstracts:

• Abstracts: Measuring brand equity across products and markets. Leveraging the corporate brand. The brand relationship spectrum: the key to the brand architecture challenge
• Abstracts: Applying the balanced scorecard to small companies. Voluntary financial disclosure by Mexican corporations. Make better decisions: divide and conquer
• Abstracts: Classification and coding for accounting operations. Presenting accounting information to management. Decision Support Systems - a new NAA monograph
• Abstracts: Interactive process quality improvement. Pricing policies for quantity discounts
• Abstracts: Straightening the tortuous - and treacherous - ROI path. Controlling service center costs. Controlling the costs of decentralized information systems

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.