Strategic Accounting Essay Example | Topics and Well Written Essays - 1500 words

strategic Accounting - Essay ExampleOne of the major developments in the area of managerial accounting is the harvest-tide heart cycle costing which has gained serious recognition during recent periods to meet the ch altogetherenges of changes in the crossroadion systems and procedures. increase animation-cycle costing being the new development in the management accounting system has been defined as a new area of reporting in cost management systems which is the accumulation of cost for activities that hap over the entire brio cycle of crossing(Hilton, 1994, p.230). Product life cycle examines the life of the product from its development stage to the stage till the removal of the product from the usage. According to Horngren & Foster (1991), product life-cycle covers the life of the product from the time of initial research and development to the time when sales and support of the product to the customers is withdrawn.Burstein (1988) observes that the life cycle costing become s more and more crucial and important in the light of rapid changes in technology and the shortening of the product life cycle. There is a sharp distinction between the products life cycle costs and the whole life cycle costs. Life cycle costs cover all the costs that the manufacturer will have to incur and whole life cycle cost includes the costs at the hands of the consumer like installation, operation, maintenance, revitalization and disposal (Shields & Young 1991.)Adamany & Gonsalves (1994) have identified the following seven-spot stages in the life cycle of a product1. Analysis Stage - involving a critical opinion of the construct and the effects of investing on the concept2. Start Up Stage - comprising of prototyping, dedication of the manufacturing facilities and realistic assessment of the effects of the investment3. Entry Stage - where the entry into the market with a new product or wait on is planned4. branch Stage - during which the firm receives back the returns on investment as potential sales revenues5. Maturity Stage - at which the firm harvests the profit from the product or service6. Decline Stage - signifying the tampering down of the sales which necessitates moving to the withdrawal stage or better the product7. Withdrawal Stage - the product is withdrawn from the market It is also vitally important that the managers get ahead all the required information at the different stages of the life cycle and the life cycle concept introduces an integrated approach to planning and budgeting. Mapping of Key Information RequirementsLife wheel around Phase convictionCustomer RequirementSatisfactionTargetPricingResourceRequirementContinuous advancementsCash clingAnalysis tiny minuteCriticalCriticalCriticalStart upCriticalCriticalCriticalCriticalCriticalEntryCriticalCriticalCriticalCriticalCriticalGrowthCriticalCriticalCriticalCriticalCriticalCriticalMaturityCriticalCriticalCriticalCriticalDeclineCriticalCriticalWithdrawalCriticalSource (Adamany & Gonsalves 1994)Actions under Life Cycle Costing for Generating Revenue and Reducing CostsRevenue GenerationCost ReductionProduct ImprovementNew ProcessesFeaturesCumulative VolumePerformanceExperience