Organize your Business for Cost and Value Management
Submitted by bcfc on July 8th, 2008
Many methods have been put forth for cost accounting and control and value management. The main cost accounting methods charge costs to center and activity. Financial accounting charges some costs as expenditures to objects. Value management methods used today do not manage actual business value creation, but provide arbitrary methods to calculate numbers called value.
Cost accounting and value management are prevented by the organization of today’s enterprise
Conventional cost management is restricted by problems with “intangible assets”, “unknown costs”, and confusion over where to charge costs. We also want to manage value, but we have no viable method for value management. We need a method to get rid of intangible assets and unknown costs and to charge our costs to the meaningful things. We also need a method to manage value as part of our business.
Result-performance Management provides the answer by organizing the business for 21st Century Management
Result-performance Management (R-pM) is a breakthrough for actual business cost and value management. Result-performance Management (R-pM) is available today to organize and manage the business by all tangible and intangible capital utilized as solutions in performance to incur performance costs to produce economic output value in results over planned time periods. [more...]
