- Published: January 18, 2022
- Updated: January 18, 2022
- University / College: University of Rochester
- Level: Masters
- Language: English
- Downloads: 31
(College) Improving Business Performance The presented manufacturer XYZ deals in electronic consumer products. Due to cash-flow difficulties, XYZ decided to implement simple activity-based costing (ABC) system. Problems that bring about the shaky state of XYZ are poor inventory management, insufficient business processess and lack of control of overheat costs. One other important point to concider is that XYZ was using a fairly rudimental traditional cost systm. This system was unable to capture the company’s production function hence contributing to it’s deteroriating situation. Since companies use ABC system to improve product, the lant manager at XYZ chose to embrace it and put it into practical shape. Based on the above areas of concern, this study further seeks to explore the fate of XYZ based on its undertakings to iomprove business performance.
Stout & Bedenis (2007) display graphical representation of ABC elements. The graphics reveal the the extent to which a company as XYZ could recover from its shaky state by just taking the elements into consideration. To benefit from ABC implementation XYZ used ABC data to costruct profit and loss statement. “ With the ABC model, XYZ is able to reveal the positive financial effects of using common components.” (Stout & Bedenis, 2007) One vital lesson learnt from the engagement between XYZ and ABC system is that work and time are infinite and we should therefore manage our time and not work. Furthermore it should also be learnt that the stracture of an organization as well as its financial status influence the effectiveness of its ABC implementation.
This article is important to the class as it extensively informs the learners on how to improve business prformance in the rightful manner. I would therefore like to discuss the following in class:
Credible measures to undertake in response to business losses
Improving business performance
Embracing modern business techniques
Works Cited
Stout, D. E. & Bedenis, G. P. Cost-System Redesign at a Medium-Sized Company: Getting theRight Numbers to Drive Improvements in Business Performance. ManagementAccouinting Quarterly, Summer 2007, Vol. 6, No. 4. Print.
